Fed’s Fisher Urges QE Reduction Seeing End to Bond Rally
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Federal Reserve Bank of Dallas President Richard Fisher, one of the most vocal critics of quantitative easing by the central bank, called for a reduction in the $85 billion in monthly asset purchases while saying he sees an end to a three-decade bull market in bonds.
“This is the end of a 30-year rally” in bonds, Fisher said yesterday to reporters after a speech in Toronto. “It would be prudent to dial back the rate of purchases we are making in mortgage-backed securities” now that “the housing market is in a good state, construction has started again, housing prices are appreciating significantly.”