Fed Will Do Anything to Stimulate Growth: Taft

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Sept. 17 (Bloomberg) -- RBC Wealth Management U.S. CEO John Taft discusses Federal Reserve monetary policy and Fed chair candidates with Tom Keene on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Is financial repression still here for retirees?


Zero in jurist rates are a problem.

That forward guidance on interest rates is the story now.

It is not whether it is yellen or summers, the forward guidance is still for interest rates to stay low for as long as possible.

This is an incredibly important point heard it means nothing is changing around all this near-term noise.

The fed and other central banks around the world are going to do whatever it takes in monetary policy to stimulate economic growth.

Even if the fed wants you to think that, look what happens in the markets after ben bernanke hinted the idea of papering.

This is a market that is benedict did.

This is really critical.

For every dollar that the fed takes out of the marketplace, pension funds will put into the marketplace for bonds.

They are all moving to immunize their long-term liabilities.

The flows into bonds will dwarf the fed's retrenchment.

Does that mean equities are fragile here because of their requirement of institutions to go into bonds to match their future liabilities?

No, i think interest rates at low levels are bullish for bonds.

That continued stimulus from central banks is why the market is doing what it is doing.

What i just described , pension funds moving into bonds will keep funds low, even when the fun starts to taper.

That means more companies.

You should trouble probably take for eisen's q and and try to sell.

Also, jpmorgan.

We are still waiting for confirmation from the bank.

The word right now is anywhere from 750 million to 850 million dollars.

For the first time jpmorgan will make a rare admission of wrongdoing.

Tenet executives will avoid actual charges in the case, but they appeared to have scored a victory in getting the bank to say that they have done something wrong.

What would you like james dimon to do?

I think he has done it.

I think he is taken accountability for the mistake and he has admitted it was a stupid error on their part.

The thing is and i agree with the former commentator, this is a case where the system worked.

Jpmorgan loss to billion dollars and he did not bring the financial system down.

That is evidence that arm -- you do have the stress tests, though.

Does that come for you in any way?

There is no question.

Last five years, capitalization ratios for major financial institutions are healthy or maybe then they have ever been.

Leverage levels are down so you have safer operating businesses sitting atop less leveraged.

That is one of the reasons the financial system is safer, sounder than it was going into the crisis.

You have general motors, that is on my agenda this morning.

General motors is telling "the wall street journal." it is developing its own electric car.

It is taking on elon musk and tesla.

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


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