LOS ANGELES - Richard Fisher, president of the Dallas Federal Reserve Bank, said Monday that monetary policy is a "very limited tool" to boost job creation in the U.S., adding that sensible fiscal and regulatory policies are crucial.
Speaking on a panel at the Milken Institute's Global Conference, Fisher hammered Congress for fiscal "misfeasance" and lectured lawmakers to craft responsible fiscal policies.
"We have children in Congress and they need to be disciplined," Fisher said.
He said "no amount of monetary accommodation can cure" an economy in which fiscal and regulatory policies are ill-advised and policymakers are not making good policy judgments.
"Monetary policy is necessary but not sufficient" to encourage job creation, Fisher said.
He said monetary policy has injected a lot of "fuel" in the American economy. "There is plenty of fuel in the system," he said.
Fisher touted strong job creation in his native Texas and said this is due to a state government that is pro-business and an overall ethos that favors job creation.
"Every aspect of our society is pro-job creation," Fisher said.
The Texas experience also shows that "prudent regulation" can help boost job creation, said Fisher, who spoke at a panel discussion on job creation.
"There is good regulation and bad regulation," he said.
Fisher said many features of the Dodd-Frank law represent "enormous regulatory overkill" and have "encumbered" financial institutions, especially small banks.
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