Fisher Speech
Summary from MNS:
FED: Dallas Fed Pres Fisher (votes on FOMC in ’11) is a hawk on QE2.
Says “it is not clear that the benefits of further quantitative
easing outweigh the costs,” especially if U.S. has “anemic recovery, but
not one that slips into reverse gear.” Barring further shock, he has
“concerns about the efficacy of further expanding the Fed’s balance
sheet until our political authorities better align fiscal and regulatory
initiatives with the needs of job creators. Otherwise, further
quantitative easing might be pushing on a string. In the worst case, it
could flood the engine of the economy with gas that might later ignite
inflation.”
Tag Archives: Dallas Fed
Re: Mishkin signal?
(an email exchange)
>
>  On Tue, Jun 10, 2008 at 8:12 AM, anonymous wrote:
>
>  Fisher’s remark induces one to wonder if Ambrose Evans-Pritchard is
>  correct in stating that Fed policy is now being concocted from Dallas.
>
>  The recent spate of criticism directed at Bernanke and Fed doves by
>  various current and past Fed officials, including Paul Volcker, implies
>  that there has been a revolt within the Fed. Mishkin’s resignation
>  supports the view that the hawks have won.
>
>
Agreed. I’ve been calling it a ‘palace revolt’.
Bernanke’s limit was inflation expectations as anticipated back in August, but he let it go a lot further than I thought he would.
The dallas crew is confused on a lot of things as well, but inflation expectations are the unifying force of the FOMC right now. When Yellen cried uncle, that was my signal.
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