Dallas Federal Reserve Bank President Richard Fisher said Tuesday the Fed can provide fuel for economic and job growth but it was up to businesses to do the hiring.
Fisher, speaking to a sold out NYU Money Marketeers group, said the Fed can provide fuel "but we can't force businesses to step on the accelerator."
He said businesses were worried about growing regulatory burdens, adding that he's "not sure" of the effects of the Affordable Care Act, which requires businesses with more than 50 employees to provide health insurance.
Effectively, businesses are finding it difficult to predict what they costs are, Fisher told the 170 attendees, so they are standing pat waiting on more clarity on costs and regulation before making hiring decisions.
Fisher also said weighed in the fiscal debate, saying he does not believe a default will occur in the U.S. and that the "bills must be paid." He added that monetary policy cannot work unless the fiscal authorities "work with us" at the Fed.
Fisher reiterated his view that he was worried about the Fed's "hyper-accommodative" monetary policy. He said the decision in September to continue its monthly asset purchases at the current $85 billion level was a missed opportunity given that markets "had priced in" the taper.
He's also worried about the efficacy of the continued asset purchases, citing Bank of England research which found out the wealth effect was not as helpful as hoped.
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