Cochrane: A Few Things the Fed Has Done Right

Your next video will start in

Recommended Videos

  • Info

  • Comments


Aug. 22 (Bloomberg) -- On “Morning Must Read,” Bloomberg’s Adam Johnson recaps the op-ed pieces and analyst notes that provide insight into today's headlines. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)

With me scarlet fu and adam johnson.

It is time for a bang up duo morning must-read.

Let's get to that with adam johnson.

Yeah, want to punch.

Me first, then you.

This is john copper and writing in the wall street journal.

He is a professor at the university of chicago.

The fed has a huge balance sheet, $4 trillion of treasuries and mortgage-backed securities, $2 trillion in reserves, 1.3 trillion dollars of currency.

When it is time to raise rates, the fed will simply raise the interest of his own reserves.

It does not need to sell trillions of assets.

To unload the paper, you literally go interview the interview, should they or should they not.

His point is simply hold the paper, let it go to maturity, and if you want to effectively raise rates, you pay a higher rate on those reserves and he will keep that money from going back to -- he makes it sound so simple.

That is the less disruptive, to borrow the phrase of a moment -- it has never been done before.

Of this is over too much more of what yields have been doing.


cochrane does not get along with mr.

Krugman, so mr.

Cochran of chicago, here is paul krugman, professor of the evil empire as far as conservatives are concerned.

There is not a shred of evidence that cutting tax or it's on the wealthy boosts the economy, but there is no mystery while republicans like paul ryan keep claiming that lower taxes on the rich are the secrets to growth versus dovetails.

The interview with mr.

Ryan earlier this week on bloomberg television, adam, this is the big debate between cochrane and krugman.

That is right.

On the one in your to be an activist, and on the other, polar opposite, john cochrane says no, do nothing other than raise the rate on reserve.

Whatever your politics, paul krugman's column, it brings up a lot of the debate.

It will get people's blood boiling.

A lot of people.

It will come extremely well done whether you disagree or agree with the professor.

Ask bob hormats, however the u.s. at surrogates itself out of quantitative easing, however that -- bob hormats, however the u.s. gets itself out of quantitative easing.

We are moving slowly, but at least we are doing it, so the u.s. is actually in a stronger position vis-a®-vis the rest of the world.

People have a general sense of where the fed is going, how it is going to do it, and when it is going to do it on clear, but i think the fed is a steady and courts for the world these days.

Certainly compared with some of the other central banks.

Our twitter question of the day today -- what will be more influential in the 2016 election -- fed or foreign policy?

Tweet us @bsurveillance.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change