Why Summers Would Be the Wrong Choice for the Fed

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Aug. 29 (Bloomberg) -- Bloomberg View Columnist Ramesh Ponnuru explains why Lawrence Summers would be the wrong choice for Federal Reserve chairman on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Washington -- ramesh joins us now from washington.

Why do you not like larry summers?

It is not a question of like or dislike.

I think he has expressed views on monetary policy that are wrong.

He has suggested that because fred rates are low, the fed could not do anything more than -- i think it is a dangerously complacent view and unfortunately, president obama's entire approach to monetary policy during his presidency has reflected that kind of complacency.

You write that the president has been too complacent, but isn't that that supposed to kind of step back and not be involved with the federal reserve?

That is the idea of the independent organization.

Normally you would not want the president caring that much about monetary policy and leave it alone.

But when he takes that lack of care to the extent of not nominating people to fill vacancies on the fed even though they have six members of his own party, i think things have been taken too far.

I feel like there's a lot of momentum behind larry summers' take over at the fed.

What is going to happen e we have consistently had a fed that has generated inflation below target, unemployment above target.

That is a consistent sign that monetary policy needs to loosen.

Hold on a second.

You saw how unemployment spiked.

I am a little confused when you say they have not really done anything.

It is not that they haven't done anything, it is that they haven't done enough.

They let nominal incomes lawman at the fastest rate since 1938, and since then they have had recovery at a rate lower than before the crisis.

Unfortunately, too many are saying they have done all they can do.

Pieces -- be specific when it comes to policy.

What more could they have done echo they could have said we are going to be doing qe not in particular dollar amounts, but whatever it takes to hit the target, with the idea the and credibility on doing that would make it less likely it would happen in the first place.

Keep in mind, sommers and obama themselves were saying they cannot do anything even before qe2 and qe3. they were demonstrably incorrect.

I know you don't like what the fed has been doing and you don't like the complacency of present president obama.

Who do you think should be taking over at the fed echo i think christine romer has understood the argument for having a new approach to fed policy.

There is some reason to think of janet yellen.

I would say either one of them.

At least they have not said any

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

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