With the housing market seemingly back on track, buying $40 billion of mortgage-backed securities a month risks "overkill," and the Fed should cut back on its purchases, Federal Reserve Bank of Dallas President and CEO Richard W. Fisher said Wednesday.

"The fact that the housing-market gears have now begun to mesh is why I believe we are running the risk of overkill by continuing our mortgage-backed securities purchase program at the current pace and would suggest tapering off those purchases," he told Columbia University's School of International and Public Affairs, according to prepared text released by the Fed.

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