over two thousand and seven rosengren made a financial presentation to the f o m c this was the dow and the s. and p. five hundred actually set their high before the market collapsed in two thousand and eight he said in fact our forecast for residential investment has become sufficiently bleak and that there may actually be some upside rest to it so where's the attendees. according to the reports that we got this wasn't long after bernanke he himself was still talking up the housing market and saying there was there's never been a national slowdown at least nationwide of the housing market he would be proven wrong but i will say if you scan the transcripts for the phrase laughter you'll find some pretty uncomfortable stuff rosengren did make a speech yesterday as we noted and this was what he had to say quote of course some observers and indeed policymakers have criticized the degree of monetary commendation of the united states as excessive however i see it differently the outcomes could lead one to argue that policy has not been sufficiently accommodative. what do you think i'm going

ones who are actually doing all the fed's buying and selling of bonds are anyways back to or arab rosengren he's been a career boston fed a ploy beginning in one thousand nine hundred eighty five and to his voting record we were unable to find a single instance of them voting against the monetary easing not once and i'm so over it two thousand and seven rosengren made a financial presentation to the f.o. and c. this was the month of the dow and the s. and p. five hundred actually set their high before the market collapsed in two thousand and eight he said in fact our forecasts for residential investment have become sufficiently bleak and that there may actually be some upside risk to it so what should be attending to last according to the reports that we got this wasn't long after bernanke he himself was still talking up the housing market and saying there was there's never been a national slowdown at least nationwide of the housing market he would be proven wrong but i will say if you scan the apple and see transcripts for the phrase laughter you'll find some pretty uncomfortable stuff ros

transcripts for the phrase laughter you'll find some pretty uncomfortable stuff rosengren did make a speech yesterday as we noted and this was what he had to say quote of course some observers and indeed policy makers have criticized the degree of monetary commendation of the united states as excessive however i see it differently the outcomes could lead one to argue that policy has not been sufficiently accommodative sorry bob what do you think i'm going to have to say doug i mean this is a slam dunk here you i agree i would say ok control room. is definitely very obvious. all right moving on we have the president of the san francisco fed john williams not the guy who composed the music to star wars and indiana jones this is another jointly anyone get on line become one sometimes the fine well john williams the for. official now he was one of the later speakers he recently moved the markets after some confusing statements which will visit us in the second period a little background first williams joined the fed in one thousand nine hundred four and his work for both the board of gov

president rosengren suggested there there would need to be two or three more months. chairman bernanke does not want a 40 to 50% basis increase. when you add that to the mix, those two are a dangerous potent k combination. >> i take a different tact and i have a question for you. has he lost control? the bond vigilantes are on the back burner now. you can't fight the fed. do you think the bond vigilantes will be able to move the market? >> well, to answer your first point about lose iing as a matt of fact, they never had it. and to the extent that low interest rates reduce savings and therefore reduce consumpt n consumption. to the extent that they destroyed business models and technically, sort of jam up the repo market, they sort of lost control. i think they are down the list. first of all the fed and the boj and others, they write trillions of treasuries. what a competitive company would do, skinny up the margin. you know, the vigilantes can be vigilant and hopefully they are and will be but it's up to the central banks in terms of tapering or not tapering. >> how

both rosengren and williams said their forecasts are above market expectations.ectations consistently for three or four months, and then they would take a modest step down. so it is not quite as hawkish as the market initially reacted to. >> tom, how likely is it that we get job reports especially let's talk about next friday's, that are strong enough to keep this conversation going, i.e., 200,000 or above? >> to julia's point, i think that this is something that the market is sort of searching for. bernanke has outlined about eight different employment indicatiin indicators he's looking to. one is a six-month annualized percent change in the actual change in payrolls. what's interesting is every time that dips, the fed responds. i think what the chairman is looking for today is basically that trend to continue even if it is just in a glacial way. that's what we've seen. we think the coming payroll report next friday will actually be consistent with this idea of this metric that we think the fed is really looking at. we think that will be enough for that to consi