Fisher Says Fed Needs to Constantly Assess Impact of Easing

Federal Reserve Bank of Dallas President Richard Fisher said the Fed needs to continually assess the costs and benefits of pushing forward with record accommodation.

“We don’t want inflation to raise its ugly head,” Fisher said in a Bloomberg TV interview today, adding he doesn’t “see that prospect right now.”

The Dallas Fed president said he is concerned that monthly Fed purchases of Treasury notes and mortgage-backed securities may create a price bubble in the bond market. “It’s something we need to constantly analyze.”

The Federal Open Market Committee last month voted to expand its open-ended bond-buying program to include Treasuries, seeking to bring down an unemployment rate at 7.8 percent. Officials are considering how long to keep that program in place.

To contact the reporters on this story: Aki Ito in Washington at aito16@bloomberg.net Michael McKee in New York at mmckee@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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