Tags: Fisher | Currencies | Easing | Debate

Fed’s Fisher: US Needs Fiscal Help to Boost Economy

Monday, 18 Oct 2010 09:12 AM

Members of the U.S. Federal Reserve's policy-setting committee might take movements in the currency markets into consideration, but this is just one factor among many, Dallas Fed President Richard Fisher said on Monday.

Asked in an interview with CNBC about whether currencies were an issue in the Federal Open Market Committee's thinking, Fisher said all members brought their opinions to the table, adding: "Depending on the individual, this will be factor that might be mentioned."

Fisher said unemployment numbers were key, and that the Fed also needed to carefully look at data on inflation and retail sales. The U.S. economy was near "stall-speed," he said.

He said the Federal Reserve would take further action to help the economy if necessary, but that the central bank could not do it alone and needed the cooperation of the fiscal and regulator authorities. He pointed out that there was ample liquidity in the financial markets but that not all of it was being put to use.

The United States will not end up like Japan, which fought deflation and economic stagnation for more than a decade despite keeping interest rates very low for a very long period of time, Fisher told CNBC.

The Fed's mandate is to fight both steep rises in prices and decreases that may cause economic contraction, Fisher said, adding that the FOMC members will be the ones to ultimately decide on future action.

"This is a deliberative body and we haven't met yet," Fisher said. "I'm not going to comment one way or another because I'm just part of the discussion."


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Members of the U.S. Federal Reserve's policy-setting committee might take movements in the currency markets into consideration, but this is just one factor among many, Dallas Fed President Richard Fisher said on Monday. Asked in an interview with CNBC about whether...
Fisher,Currencies,Easing,Debate
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2010-12-18
Monday, 18 Oct 2010 09:12 AM
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