CNBC's Kelly Evans shares her thoughts on establishing a futures market on the
FOMC.
Transcript:
what are you watching this tuesday morning? well, as much as you are fascinating
with the markets, people want to know what happened. we have been talking about
the weird signals coming out from the ma22nd, whether it is a speed up or
slowing or square from the fed. ing to bring us to a topic here of what is
happening with the prediction market and gdp. can do the gdp bonds, and a lot of
people out there will be familiar in terms of this debate with the nominal gdp.
since may 22nd, again, some confusion to some extent in markets about whether
what we have seen the fed spurring freakout in credit markets or equities or
responding to improvement of conditions on the ground. trying to get the signal
from the noise here would be much eathere were a place the look to saying that
the market participants see the growth and increasing over to the longer term or
decreasing? a couple of ways to do that is that you can, again, set up futures
in the gdp linked bond or do a prediction market. one of the guys calling for
this is noting that if it is done right, the markets, themselves could more
smoothly guide the taper and there wouldn't be any friction back and forth
between what one group is thinking and another at the fmyc, and another fed
notes that without this type of thing in place, we are still flying blind. that
certainly seems to be the case thinking about the market activity over to the
last six weeks. and guys, the jury is whether this is the right thing for the
fed to target gdp instead of inflation, and the tacit market. and there is a
strong case for being set up a market to get this information out there, and
then we would know with clarity, are we taing about the growth or not. well, to
some extent. helping people know what people are thinking. and better than what
finesfelt came out. it is better when he is in the journal, and jim, you didn't
like the piece? well, what you said is more formative and gun to the head -- and
gun to the head may not be the right thing. and his response would be if there
is a supply shock here happening to the economy, it is not something that you
will necessarily as the fed respond to, but it would help to have clarify from
the market itself. i could not agree more.
The Transcript could use a bit of work BW
I like the NGDP futures market idea.
ReplyDeleteYou know, Thomas Jefferson said the only thing more dangerous than a standing military would be a central bank controlled by bankers.
He was right.
It’s great to hear from Kelly, as she has been really lovely to hear from, I usually we got to keep these things on our mind while working. I always love to hear from experts and even at present, I am using OctaFX broker’s daily market news and analysis service, it’s ever easy for me to work with them and it always leads into great profits, so that’s why I am able to work pretty nicely and it leads to serious rewards for me!
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