The Federal Reserve’s emergency programs in response to the financial crisis were successful in helping the economy and now the central bank is at risk of overdoing it, said Dallas Fed President Richard W. Fisher.
The central bank “opened the floodgates” and “it worked,” the regional bank chief, who votes on monetary policy this year, said during a speech today in Dallas. “We re- liquefied the economy. In my opinion, we might have done too much.”
Fisher, 62, reiterated a point he’s made in the past week that the Fed may be going too far, even as he defended the central bank’s initial decisions.
“Someone had to step into the breach” when panic ensued, Fisher said in remarks made as part of the Real Estate Council Speaker Series.
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