Richard Fisher, president of the Federal Reserve Bank of Dallas, said that “a lot of money is lying on the sidelines, lying fallow” and “we will not support” another round of quantitative easing, in an interview with Fox Business Network.
“Right now, the economy is improving. It’s not a fast trajectory,” Fisher said according to a transcript distributed by the network today. “Economic growth is slower than we’d like, but it is positive and gaining momentum. We wish it were more robust. It is getting better, it is healing.”
Fisher also said that economic growth has been undermined because investors are uncertain about the U.S. election, government spending and tax policy, according to the transcript. The interview is scheduled to be broadcast at 4:30 p.m. New York time, Fox said.
“Nobody knows what their taxes are going to be, no one knows what the spending cuts are going to be,” he said. “So economic growth is slower than we would like. But it is positive. It’s gaining momentum. We wish it were more robust.”
Fisher said that higher gasoline costs are being offset by lower prices for food and other commodities, according to the transcript.
“You know, I am a hawk on inflation. But that is, inflation has been coming down, not going up,” Fisher said. “I watch this like a hawk, because this is my little part of the aviary at the Federal Reserve system. I’m perched, ready to pounce on inflation. I don’t see that as the problem presently.”
The consumer-price index climbed 0.4 percent in February, after increasing 0.2 percent the prior month. The so-called core measure, which excludes more volatile food and energy costs, advanced 0.1 percent.
Consumer prices increased 2.9 percent in the 12 months ended in February, the same rate as in January. The Fed aims for an inflation rate of 2 percent.