Fischer Backs Fed QE3 as World ‘Awfully Close’ to Recession

Bank of Israel Governor Stanley Fischer said the world is “awfully close” to a recession, and backed the Federal Reserve’s increase in quantitative easing as strengthening its policy credibility.

While there has been “a lot of progress made” to improve the global economy, its impact hasn’t materialized, Fischer said in an interview in Tokyo with Bloomberg Television airing today. He signaled that by deciding not to set an end date or total amount to its third program of bond buying, the Fed is easing worries it will run out of ammunition before achieving its goals.