Fed President Fisher Candidly Reviews Monetary Policy

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Source: http://www.flickr.com/photos/ken_mayer/

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.

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