Fisher: Fed Must Avoid Disrupting Recovery

The recovery should be allowed to build without disruption, but fiscal and regulatory policies have created “angst” that has hindered growth, according to Federal Reserve Bank of Dallas president Richard W. Fisher.

“At a minimum, we need to let the slight momentum of the current economic recovery build and do nothing to disrupt it,” Fisher told the Greater Houston Partnership on Wednesday.

“As for doing more than avoiding passive tightening in an attempt to goose up that momentum, much will depend on the cost-benefit trade-off of utilizing any of the additional tools in our kit,” he said. “The consensus of the committee is to keep the price of money — the cost of the gas needed for our nation’s economic engine — low until the committee is confident that the gears of the economy have begun to mesh more robustly.”

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