Fisher Says More Stimulus May Overburden Central Banks
Federal Reserve Bank of Dallas President Richard Fisher said adequate economic stimulus is in place and that global central banks may not have the capacity to undertake additional measures.
“We’re at the risk of overburdening the central banks,” Fisher said in an interview today on “Bloomberg Surveillance” with Tom Keene and Sara Eisen. “We keep applying what I call monetary Ritalin to the system. We all know there’s a risk of over-prescribing.”
Fisher said the largest banks have $1.5 trillion in excess reserves that they would like to put to work and that the private sector now must take the next steps to boost growth. Lawmakers also must act to eliminate uncertainty about government spending and tax rates, Fisher said.
“We have done our job,” Fisher said of the Fed. “We have done enough. Just doing more doesn’t solve the problem. The problem is engaging the transmission. We provided the gas, the gas tank is full.”
The Dallas Fed chief isn’t a voting member of the policy-making Federal Open Market Committee this year. He dissented last year twice against moves to push down long-term rates and to keep the benchmark U.S. interest rate near zero until at least mid-2013. He voted five times in 2008 in favor of tighter policy.
To contact the reporters on this story: Jeff Kearns in Washington at jkearns3@bloomberg.net; Caroline Fairchild in New York at cfairchild2@bloomberg.net
To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net
Federal Reserve Bank of Dallas President Richard Fisher
Peter Foley/Bloomberg
Federal Reserve Bank of Dallas President Richard Fisher said, “We’re at the risk of overburdening the central banks.”
Federal Reserve Bank of Dallas President Richard Fisher said, “We’re at the risk of overburdening the central banks.” Photographer: Peter Foley/Bloomberg
Aug. 8 (Bloomberg) -- Federal Reserve Bank of Dallas President Richard Fisher talks about monetary policy and the potential risks of additional economic stimulus. He speaks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance. (Source: Bloomberg)
Rate this Page
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.