Yellen Brings Institutionalized Revolution: Schulz

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Oct. 10 (Bloomberg) -- Christian Schulz, Senior Economist at Berenberg, and Bloomberg’s Hans Nichols discuss the U.S. debt ceiling, political posturing, and the nomination of Janet Yellen for Fed Chair. They speak on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Either from the markets or even from imf officials?

Will that help?

It would be great if they came to conclusion said today or very quickly, because it would be the best outcome.

It does take pressure from wherever it comes, from the markets, from europe, brussels, from the imf, from the international community to build up enough pressure for politicians to come to a deal.

Ultimately, they still have a lot to gain in this posturing and trying to extract concessions out of each other.

How much do we know about the impact on growth?

In terms of growth on the debt ceiling, if they do trigger that, it will have disastrous reactions.

The thing at terms of negotiations.

-- looking at terms of negotiations.

It is odd there's no talking about funding the government -- you're looking at a 1.4% shave up.

You cycle that factory what we heard from the fed yesterday, that means you could have the tape are being pushed out even further.

There are so much political conflict in washington, no prospects for growth.

We are looking at the data for the third quarter at the moment.

What kind of growth we went into this crisis with is unknown.

The pmi for the u.s. was actually quite strong.

Hopes are quite high that was a good quarter come even though the fed did not tape or because of these cautions they have.

For the fourth quarter, there must be some sort of impact in confidence or even directly on consumption via the shutdown.

It is too early to assess because we still have weeks to go.

Impact on growth enough to push tapering back to mid-next year or are with the team at march?

In terms of tapering, the key was what drove the nondecision.

Was it the fiscal shutdown?

It didn't really look the highest priority.

I think the housing market in asia straits were the highest property.

I think tapering this year is very unlikely.

We know janet yellen has been nominated, but you're telling me we have to look at the other board members.

It depends on what cards barack obama wants to play.

If larry summers was the first choice, then one way obama can compensate is by these three open spots, put more people in there.

There are potentially more concerned about inflation than janet yellen is.

President obama talked about the dual mandate and in all missing like he was giving lip service to the unemployment site.

More than anywhere else in washington or new york were your concerns about inflation are inside the halls of the west wing.

For some reason, perhaps it is because of 1998, other crises that people were forged in, there is a great deal -- not a great deal, but more concerned about inflation inside the white house than anywhere else that i am aware of.

Japan, obviously.

Christian, how difficult at the moment is a to know what the next fmoc will be despite janet yellen at the head?

She is the driver.

They're not going to undermine her credibility by veering away from what her line is.

Her line is going to be institutionalized revolution, if you will.

We have the revolution under the bernanke, and -- but she still has to lead by consensus.

That is what bernanke did and

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

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