Bernanke Has Done 'Fantastic Job': UBS Exec
“I was probably a little skeptical about QE2, when they announced it,” said UBS’s Robert Wolf, adding that he thought it was an “export initiative” to get the US dollar “low.”
“In the last few days, I’ve probably changed my mind. One is Bernanke’s testimony, his meeting with Republicans, where he talked about the Boston report [that the latest quantitative easing could lead to the addition of] 700,000 to a million jobs.”
Wolf said what has also swayed him were the recent reports on the core inflation numbers at a 50-year low and low housing permits. Wolf advises President Obama on economic matters.
“So if the Fed chair, who I think has done a fantastic job in the last few years, thinks it’s [quantitative easing is] going to add to job growth, help the housing market, and he’s not worried about inflation, it’s hard for me to say, ‘Well, wrong choice.’ ”
Wolf said he is in favor of an “infrastructure bank” to promote growth in the economy, whereby money is set aside for infrastructure projects. He testified recently about the idea before the Senate Banking Committee. Wolf said that Obama supports it, as well.
“Most people have this number in mind for every billion spent, you get 25,000 plus jobs,” said Wolf. “
"Where construction and manufacturing has seen employment reduced the most out of all sectors and where housing is, it seems to make sense that we look at [putting money into] infrastructure as a way forward for growth.”
UBS missed out on the GM IPO [initial public offering], but Wolf said he hoped that the bank would be part of the second offering.