with us is michael gapen from barclays good morning to you.it the fed decision and the forecast yesterday from janet yellen that is leading to the weakness >> i think it's a contributing factor yes. it's hard to look at a fed that's normalizing either front end interest rates higher, balance sheet runoff and think that won't weigh on equities to some degree. i think it's a factor. >> are investors missing a trick here we very clearly got forecasts from the fed, another rate hike this year, around about three next year. that's not really priced in by investors. >> no, it's not. the fed has a view that inflation will be stronger than i think the market does. i think the market is looking at some recent weakness in inflation saying it's more than transitory it's betting that at some point the fed won't fully execute on its interest rate plans. the fed continues to push markets higher and signal that they'll take action. the markets won't listen to the near-term story there, but discount actions further out >> michael, how worried are you about th

expansion that you just mentioned and "wall street journal" today a gentleman by the name after michael gapen from barclay's, a former fed economist. zblo the fed has done a tremendous job helping the economy grind its way out of an extremely deep and disruptive recession it generally operate add lone and received a lot of criticism for doing what congress asked it to do. do you have a problem with that statement? >> not one bit i'll tell you why. our congress has not given us a budget in eight out of last 15 years. they have done nothing to -- look, the principle is the fed provides liquidity for the economy and the fuel and fiscal policy, regulatory policy should be what then drives the economy forward. the fed had to act all by itself i play have been a critic as to going too far. the fact is there was no other player in town it was only the federal reserve. our fiscal authorities disappointed us over and over and over again and coming back to a point i made earlier, despite all this distraction we're seeing in washington, remember, we went through president nixon's resignation, president