just a short while ago i spoke with adam posen. he steps down this week from his position on bank of england policy committee. i asked for his thoughts and whether policymakers were doing enough. >> central bank's job in the eurozone just as every where is to provide monetary and financial stability. their mandate is to stop the panic. buying and selling bonds is what they are supposed to do. at merrill lynch, we understand the importance of your goals. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch. >>> these are your headlines. isaac is on the verge of becoming a hurricane as it closes in on the u.s. east coast much some relief for spain and italy as yields fall significantly. bank of england adam posen tells cnbc exclusively the ecb should buy peripheral debt because its mandate is to stop panic

adam posen on yesterday said they should target more mortgage-backed securities. what should they be doing? >> well, first of all, i think it's right to ease policy further. the economy is fragile and lots of risks, whether it's the fiscal cliff in the u.s. or growing financial crisis in the eurozone. i think more policy is appropriate. whether it will make a huge difference is debatable. this is the third round of asset purchases by the fed. i think they're right to ease more but whether it changes the big picture, i doubt it. >> the big picture is what? >> as far as the u.s. is concerned it will be reasonably upbeat. we're looking for growth of 2% this year and next, which isn't bad. growth rate people in europe would kill for. the problem is very little the fed can do to direct problems in the rest of the world. you have the mounting crisis in europe. the unbalanced economy in china. frankly, the fed purchasing more mortgage-backed securities in u.s. treasuries -- >> do you expect much of a market reaction, either in terms of dollar or, you know, real asset pri

watch adam posen tomorrow at 11:00 a.m. cet. [ male announcer ] the perfect photo... [ man ] nice!n't always the one you plan to take. whoa, check it out. hey baby goat... no that's not yours... [ hikers whispering ] ...that's not yours. [ goat bleats ] na, na, na -- no! [ male announcer ] now you can take a photo right from video, so you'll never miss the perfect shot. [ hikers laughing, commenting ] at&t introduces the htc one x. now $99.99. rethink possible. >>> good morning. today's top stories, hurricane warnings for the gulf coast. isaac marching towards the energy rich area. this was supposed to be mitt romney's big week but the storm is foorgs shuffle of the schedule at the republican convention in tampa. in corporate news a major win for apple the iphone maker claiming a sweeping patent victory over smartphone rival samsung. both stocks responding. it's monday, august 27, 2012. "squawk box" begins right now. >>> good morning, everybody. welcome to

adam posen who was in his last week as a member of the bank of england monetary policy committee joined me exclusively on "worldwide exchange" and said it was in their mandate. >> central bank's zwroin eurozone is to provide monetary stability. buying and selling bonds is what they are supposed to do. that's what central banks do. >> so there we go. we think the ecb agrees. so dollar slightly stronger. it did get a little spike up from that draghi news. maybe the other thing is, joe, guys, maybe he couldn't spend the time to get on a jet and go hang out with steve. maybe that was the final decideder. >> art cashin wrote in a note and said this is something steve talked about, he can't go to bernanke's and if upstage him. it's like wearing a white to a wedding. don't upstage the bride. if you have news or say anything that makes news you're stepping on bernanke's toes with that too. >> what actually could he say? right? what more could he add. >> right now the trading floor would look at every single word, how he said. they would parse it all out. >> didn't even to when. >> absolutely, b