Wall Street Shifts Focus Away From Washington

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Oct. 17 (Bloomberg) -- BofA Merill Lynch's Ethan Harris, Moody's Analytics' Mark Zandi and The Wharton School's Jeremy Siegel discuss the impact to the U.S. economy in the wake of the government shutdown with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

What are you watching most carefully right now or the market?

I think it is the data.

The taper call is really a data call anyway.

It is the data.

You were the one economist who said there will be no tapering in september.

You were bright.

I think the story is people were not looking at the data.

They did not hear anyone at the senior level or the fed telling us know.

Everyone gets fixated on data.

The reality is the economy was not picking up, the economy was too low.

Are we going to get a pickup to better growth?

Are we going to stay stuck in the mud at two percent?

That is the question of the day.

Are you betting the tapering is not coming anytime soon as result of the dysfunction in washington?

I think it is certainly delayed.

I think the key data is the job numbers.

That is what we are most focused on.

It feels like even below the -- before this job growth was slowing closer to 150,000 per month.

I do not think that is enough to convince policymakers.

I agree with even if you look at the data, one could easily make the case that the fed would not begin to taper in september.

What was so perplexing is the fed did not guide the markets in that direction.

The key to the well functioning monetary policy is the ability of the fed to communicate to the marketplace.

It was not about the economics.

It was about the communication strategy.

Fame market made a mistake in the fact that they thought the fed was not going to taper?

-- the market made a mistake in the fact that they thought the fed was not going to taper?

Somehow they were communicating because even said they would not communicate.

I would like to get his earpiece.

I need that.

Two wrongs do not make a right.

The fact that the chairman and vice chairman and president of the new york fed did not speak for two months was a huge mistake.

If they decide at the meeting that tapering is not make sense, doing the tapering to satisfy the markets i think is doing something wrong to try to fix something wrong.

They did not communicate it enough.

Said they were frustrated because they did not feel they were communicating enough.

If we can assume there is more sugar coming our way for the foreseeable future, that will only be good news for the market, right?

Most certainly.

Let me agree with mark.

I have been a big fan of ben bernanke and monetary policy, but i do think to go so against what the expectation was was a mistake and miscommunication.

That being said, it looks like december will start.

Looks like the christmas season will be very important for the fed and the economy.

Will the gloom begin to lift the setback since we have seen since the lowdown?

If that against to list, it could very well be december.

That could set us up for what i think will be a fairly good 2014 where we could see gdp and 3.5% above a year ago.

Earnings are coming out a little bit we.

There is still a percent ahead of a year ago third quarter, which is not bad and a slow economy.

All we need to see is a little bit of the salida -- speed up.

I think the market is going to continue to rise.

Lex final word to you.

What does the forecasting tell you about the upcoming retail season?

I think it is going to be difficult.

I think given the policymakers have kicked the can to january and february am i do not see the economy kicking into higher gear until lawmakers get off the front pages.

As soon as they do, i think we are off and running.

Until that happens, i do not think we are going anywhere fast.

I want to thank the entire

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

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