Federal Reserve Bank of Dallas President Richard Fisher said Japanese Prime Minister Shinzo Abe has “politicized” the Bank of Japan in a quest to halt more than a decade of falling prices.
“He’s aggressive. He has basically politicized the central bank, which worries me personally,” Fisher said today in a speech in San Antonio. “But he wants to see this deflationary” tendency “exorcized” and “he’s working very, very hard to change things, and indeed the stock market has responded.”
Abe came to office criticizing Bank of Japan Governor Masaaki Shirakawa for failing to lift Asia’s second-largest economy out of deflation, and nominated Asian Development Bank President Haruhiko Kuroda to replace Shirakawa. Kuroda told parliament this week that the central bank hasn’t bought enough assets to revive the economy.
The Nikkei 225 Stock Average has surged 15 percent this year.