Tags: federal | fed | fisher | bernanke

Fed's Fisher Says He Still Opposes New Easing

Monday, 07 Nov 2011 06:01 PM

Dallas Federal Reserve Bank President Richard Fisher on Monday said his support for the Fed's decision last week to continue efforts to push down borrowing costs does not mean he is a convert to the need for more easing.

Fisher voted with the 9-1 majority on the Fed's policy-setting panel last Wednesday to hold a steady course on the central bank's super-easy policy. It was a departure for the Texas central banker, who opposed the Fed's easing in August and again in September.

"I already dissented, and everybody knows it. I didn't support those programs and I haven't changed my mind," Fisher, 62, said in an interview with Reuters at the regional Fed bank's headquarters.

"There was no new proposal, no new initiative, so therefore there was no reason to dissent," he said. "But we didn't take any new steps, and to me, that's progress," adding that if there had been a proposal to do additional easing, he would have opposed it.

His grounds for voting against the Fed's decision in previous meetings were that what the economy needs is not lower interest rates but more clarity from lawmakers on the future of tax and regulatory policy.

Fisher said, as he has repeatedly, that the Fed has done its job, keeping rates near zero for nearly three years and buying more than $2 trillion in long-term securities to send borrowing costs down still further.

Fisher said he still sees the lack of clarity on U.S. fiscal policy as the biggest drag on U.S. growth.

But credit problems in Europe are also hurting, and not just because a slowdown in Europe could hurt U.S. exports.

"It's one more inhibitor of confidence, it's one more factor of uncertainty," he said.

Europe's debt problems are rattling world markets as investors worry that the latest hot spots in the 17-nation euro zone's debt crisis could spiral out of control, toppling banks and spreading through the rest of the world's financial industry.

Last week the U.S. central bank lowered its growth forecasts, raised projections for unemployment, and said it was considering additional mortgage debt purchases.

Most Wall Street economists believe the snail's pace of recovery and weak U.S. jobs growth will push the Federal Reserve to undertake more measures to help the economy, according to a Reuters poll on Friday.

But Fisher, who will rotate into a non-voting spot on the Fed's policy-setting panel next year, said he would not support a third round of quantitative easing, which would be known as QE3.

"QE3 is not going to happen in my book, unless it's clear we have not provided enough liquidity," he said.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
StreetTalk
Dallas Federal Reserve Bank President Richard Fisher on Monday said his support for the Fed's decision last week to continue efforts to push down borrowing costs does not mean he is a convert to the need for more easing. Fisher voted with the 9-1 majority on the Fed's...
federal,fed,fisher,bernanke
438
2011-01-07
Monday, 07 Nov 2011 06:01 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved