The too-big-to-fail question remains a “very significant issue” for policymakers, Federal Reserve Bank of Dallas president Richard Fisher said Wednesday.
Fisher advocates breaking up these too-hard-to-manage institutions.
Fisher also denounced the Fed’s second round of quantitative easing, calling the purchase of $600 billion of Treasury securities — which he said is akin to monetizing Treasury debt — a “dangerous course to follow.”
Turning to the Japan situation, Fisher told an audience in Berlin it is too early to know what the impact of the ongoing crisis would be on the economy.
However, the earthquake, tsunami, and nuclear crises are not “a long-term issue that affects the course of monetary policy,” Fisher said.
