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Fisher Says Fiscal, Tax Policy Has Been Barrier to U.S. Growth

Federal Reserve Bank of Dallas President Richard Fisher said uncertainty over U.S. fiscal policy and tax rates has been an obstacle to a recovery in employment.

“We need to completely reboot our fiscal policy,” Fisher said in a speech today to the Texas Tech Alumni Association in Dallas. “We have to compete in terms of our tax regimes and the incentives we provide for business.”

U.S. fiscal policy needs to play a more important role in accelerating growth to reduce a “too-high unemployment rate” at 9 percent, while the Fed can only provide liquidity to the financial system, Fisher said.

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