IBM Vice Chairman Gary Cohn says, “the market became addicted to knowing what the Fed was going to do” as he discusses market reaction to Federal Reserve Chairman Kevin Warsh’s handling of the US central bank. Cohn also discusses Japan and the US Treasury Department working together to shore up the yen and the instabilities being dealt with by markets. He talks to Bloomberg&#x27;s Jonathan Ferro and Lisa Abramowicz.<br>See omnystudio.com/listener for privacy information.

IBM Vice Chair Gary Cohn IBM’s Cohn Talks Warsh’s Fed

Bloomberg Talks

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[SPEAKER_04] Joining us now, the former NEC Director and IBM Vice Chair Gary Cohn. Gary, good morning. Good to see you.

[SPEAKER_02] Good to see you. Thanks for having me.

[SPEAKER_04] You've been following the debate. I want your reaction. You know Kevin Warsh well. What is everyone getting wrong? And I say everyone, I mean the consensus view on their reaction to that news conference last Wednesday.

[SPEAKER_02] I'm not going to characterize this as anyone's getting anything wrong or anyone's getting it right. What I'm going to characterize this as, Kevin is a masterful student of the market. Kevin has been at the Fed before. He understands the limited toolbox, but the effective toolbox that the Fed has. What Kevin is doing right now, and I think people don't like this, is Kevin is reverting the Fed to the historic norms of what the Fed did.

[SPEAKER_02] We unfortunately, as newscasters or as market makers or as traders, we got spoiled from the 08 period on. From 08 period on, the Fed has been an open box. They've been completely transparent. They have not done anything that you wouldn't know they would do hours or weeks or months before they did it. And the market became addicted to knowing what the Fed was going to do.

IBM Vice Chair Gary Cohn IBM’s Cohn Talks Warsh’s Fed

Read the full transcript

The candid version is on a podcast,
not the earnings call.

IBM Vice Chair Gary Cohn IBM’s Cohn Talks Warsh’s Fed

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.