Federal Reserve Bank of Dallas President Richard Fisher said the U.S. central bank risks derailing the economic recovery if it delays its first interest-rate increase for too long and then is forced to raise quickly.
"I'm in the slow and gradual school," said Fisher, who would like a first increase in the spring of next year. "It would be a mistake to wait too long and raise rates rapidly. There is no time in history when the Fed has done that and hasn't driven the economy into recession," Fisher said Friday in an interview on Fox Business Network.
Fisher cast one of two dissenting votes this week against the Federal Open Market Committee decision to maintain its pledge to keep rates low for a "considerable time" after the bond buying program ends. The Fed is on pace to end the program in October after it boosted its balance sheet to a record $4.45 trillion.
