fisher invented the phrase altra accommodative. which is where we are now.e lead in with my first question to stand fischer this morning. why are we so afraid to raise interest rates? doug: i don't know. i think they are too data dependent on equity markets, financial markets in general. it should be about the real economy. the real economy is not doing great. a 20 point hike in the funds rate will not change that very much. we had to get back to a more normal bonds rate policy as a way of getting financial markets in better shape going forward. tom: we have a lot of younger students coming out of our schools that we have never seen -- that have never seen a rate increase. that is something that you and i do not know from decades ago. it is not that important whether they raise in september or not. i think they should, but suppose they don't. the real question is, what do you think things will look like in december of 2015? it is going to be altra accommodative. normal is successes rate increases. dearth ofve this productivity. i will address that with chair

altra accommodative. accommodative. what is that, and why do we have this reticent worldwide to raise interest rates? this was said at a time when we got zero was as low as you go on interest rate, could not be more accommodative than zero. now we know you can go negative as well. it is extremely accommodative to not have to pay interest. nominal interest for sure. that is what this monetary policy is about. it has worked. tom: why are we struggling to raise rates a little bit. >> the interesting situation in which we are is the climate has been rising pretty fast relative to previous performance. low.nflation is very the situation is not to move inflation as well as employment returning to more normal levels. levels we specified in advance. look at this, and look back at the dual mandate of the fed, 1977. that was so complex. one year after you had to valid short tax. is this modern fed trying to do too much within the dual and the fed we saw before that? are we asking too much of people >> it is interesting the proble

percentage points accommodative it tom: thisis critical because sam fisher invented this phrase altra accommodativeifications to our listeners and viewers daily lives? i cannot figure out what changes? >> all rates will start to move up when the fed increases rates but if they do it slowly it will not have a big immediate effect. certainly mortgage rates will start to go up and longer-term rates will start to go up. tom: even if they say we want have a greenspan measure format. here is the interest rate to get us away from stan's ultra accommodative stance there is damage to the system if we do that? >> there could be. the rates could be damaging for consumers are when money for homes. there has been no connection for 20 years between wage growth and inflation. at our guestsook at jackson hall. greeley, jim bullard is a neutral voice and always makes news. how far apart are these chosen four from vice-chairman fisher? >> they're pretty far from each other. i think esther george is the most sensible of the bunch and i think that my friend has been kind of out to lunch for the last couple of years so