Fed President Fisher Candidly Reviews Monetary Policy
Dallas Federal Reserve Bank President Richard Fisher wears his economic policy on his sleeve, and he has no intention of tamping down his views when he rotates into a voting position on the Federal Open Market Committee (or, FOMC) in January. Fisher previewed his stance in an interview Monday with a private, educational foundation, the Library of Economics and Liberty.
“I’m very worried about this,” Fisher said of the Fed’s bond-buying program, “and I expect that my own voting behavior will reflect this concern that I just stated. I don’t think these are programs that should be continued, and I worry about the fact that we’ve already painted ourselves into a corner which is going to be very hard to get out of.”
The Fed policy of purchasing $45 billion in long-term Treasury securities, and $40 billion in agency mortgage-backed securities per month was altered in December. At the FOMC meeting for December, the board voted for an overall program reduction of $10 billion per month. Starting in January, $40 billion and $35 billion will be the pace of purchasing long-term Treasury securities, and agency mortgage-backed securities, respectively.