Tags: Feds Fisher More Bond Buys Risky | Unlikely

Fed's Fisher: More Bond Buying Risky, Unlikely

Monday, 05 Mar 2012 01:50 PM

Only the most "dire of circumstances" should spur the U.S. Federal Reserve to buy more assets, and that is unlikely, a top central bank official on Monday.

Dallas Fed President Richard Fisher, an outspoken policy hawk, said he was "perplexed" by Wall Street's continued preoccupation with the possibility that the Fed will engage in a third round of large-scale asset purchases, known as quantitative easing, or QE3.

"I believe adding to the accommodative doses we have applied rather than beginning to wean the patient might be the equivalent of medical malpractice," he said in prepared remarks to the Dallas Regional Chamber.

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"It is my opinion that we should run that risk only in the most dire of circumstances, and I presently do not see those circumstances."

Fisher, who does not have a vote on the central bank's policy-setting committee this year, added that recent economic data indicate improving growth and prospects for job creation this year, though price stability is being "challenged" by higher gasoline prices.

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