Laura Ingraham hosted Andrew Huszar.
Huszar said the Federal Reserve, at the time of the Great Recession, went to quantitative easing which means the Fed bought the credit of the big banks to give them money to lend. He noted that the program worked very well for the banks, but that the money didn't trickle down to the average American, whom mostly don't down large amounts of stock.
Huszar said that while he is a huge supporter of the Federal Rserve, but feels we need a conservation about these practices which is basically printing money that will lead to future inflation which would make credit and mortgages very expensive. Ingraham and Huszar agreed that it's been a jobless recovery and that the Fed can't cause the recovery itself. Huszar said that there have been three rounds of QE.
Huszar said the risks are that the market will sell off when the Fed stops printing money. This may come to the point where the Fed will have to sell its debt it bought. Huszar said the big issue is how the Fed unwinds and pulls back which will be the hardest thing the Fed will have to do. Ingraham said that basically the US decline is being managed by the Fed as the country's economy is based on productivity. He said the Fed is well audited and the big issue is that the Fed can't effect the recovery by itself. He said the Fed's role is to maximize the employment of the US and manage the value of the dollar. He feels that we need ofre government R and D spending.
