Fed’s Fisher Says Housing Market Leading U.S. Economic Recovery

Sept. 19 (Bloomberg) -- Federal Reserve Bank of Dallas President Richard Fisher said the housing market is leading the U.S. economic recovery, which he said hasn’t been assisted much by the Fed’s purchases of bonds.

“The housing market is on the move,” Fisher said today on Bloomberg Radio’s “Hays Advantage” with Kathleen Hays. “My views haven’t changed. I question the efficacy of these large-scale asset purchases.”

Fisher, who doesn’t vote on monetary policy this year, opposed the Federal Open Market Committee decision last week to expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month. The Fed seeks through a third round of quantitative easing to boost growth and reduce 8.1 percent unemployment.

“We saw a pop in the equity market” following the move, Fisher said. “That seems to have fizzled a little bit.” Inflation expectations also have increased following the Fed decision, he said.

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