Fisher: We’ll Tighten When Growth Is Gaining Traction

Dallas Federal Reserve Bank president  Richard Fisher yesterday said that the time for the Fed to begin tightening its monetary policy is when it becomes convinced that economic growth is “gaining traction” and that banks are ready to expand lending.

For now, though, Fisher suggested that economic and financial conditions are only beginning to improve, and he minimized inflation risks. On the contrary, he said, deflation is a greater risk than  inflation.

—Market News International

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