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Fed’s Fisher Says Purchases May Be ‘Wrong Medicine’

The Federal Reserve’s decision to undertake a second round of large-scale Treasury purchases may be prescribing the “wrong medicine” to the economy’s ailments, said Richard Fisher, president of the Fed bank of Dallas.

The 61-year-old regional bank chief, who votes on the rate- setting Federal Open Market Committee next year, identified a number of costs to the Nov. 3 decision, including a weaker dollar and perception the Fed is “monetizing” the government’s debt by creating money to finance the shortfall.