The Dallas Fed president adds one hell of a caveat to when he thinks the FOMC should start slowing bond purchases (formerly thought to be the day before the earliest time possible), a program he previously accused of:
- debasing the dollar;
- having potentially “tragic” consequences;
- “building up kindling for speculation and eventually, a massive shipboard fire of inflation;
- and, of course, “the ruination of our economy and lifestyle.”
“We should begin reducing bond purchases in September, as long as we don’t see a clear worsening of the economic data,” the president of the Federal Reserve Bank of Dallas told German business newspaper Handelsblatt.
Fisher’s new (opportunistic) dovishness comes as his colleagues (most of them, anyway) seem to at last be coming around to his side. Although one of them is getting the hell out before she has to deal with the fallout that will result. Read more »
When Richard Fisher says that the Fed is getting awfully close to beginning to end his hated QE3, everyone shrugs their shoulders and says, “the Dallas Fed president is up to it again.”