FRANKFURT, Germany — Amid mounting inflation pressures worldwide, the Federal Reserve’s ongoing expansive monetary policy poses risks for price stability, according to remarks by Federal Reserve Bank of Dallas president Richard Fisher.

“U.S. firms have enough financial fuel in the tank to expand and create jobs,” Fisher argued in an opinion piece in the German business daily Handelsblatt on Wednesday. “Now that the Fed has completed its job, I see predominant risks of too expansive monetary policy.”

“Our job is not at all to inflate away the debts of an irresponsible government — or even to appear to do so,” he said. “Historically, the central bank financing of deficits has always led directly to an abyss. We should shut this door and throw away the key.”

“I see a risk that we will be unable to keep inflation under control,” Fisher added. “Growing price pressures are evident throughout the world.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.