Monday, May 20, 2013

It's The Economy Stupid: Fed's Fischer on CNBC

The Dallas Federal Reserve Bank’s Richard Fisher on CNBC this morning:

 

- The Fed should not go from "wild turkey" monetary policy to "cold turkey" overnight, that when to dial back is the key because just stopping would be "too violent for the market."

 

-Would like to see Chairman Bernanke stay

 

-The Fed is basically underwriting Congress for not doing its job, saying he's an "equal opportunity basher" of both Democrats and Republicans.

 

-Fisher said the U.S. needs a rational fiscal policy to help spur economic growth.

 

-Cheap money has made rich people richer, but hasn't done quite as much for working Americans, he explained.

 

-Policymakers have not seen the robust job creation that they'd like to see, the Fed's Fisher explained, adding that the labor force participation rate is a very important consideration.

 

-The asset buying has helped boost the stock market, "but has it worked in the economy? ... We don't know."

 

-Fisher, who had argued against quantitative easing in the first place, said he'd start tapering by scaling back the purchases of mortgage-backed securities. Fisher said he's not alone in his thinking about scaling back asset purchases.

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

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