AUSTIN, Texas--Federal Reserve Bank of Dallas President Richard
Fisher reiterated his support Wednesday for the central bank's
effort to wind down its bond-buying stimulus program.
"I'll continue to vote for a reduction" in the stimulus program,
said Mr. Fisher, who this year is a voting member of the central
bank's policy-setting Federal Open Market Committee. As it stands,
he said, there is already "enormous liquidity in the system."
Mr. Fisher has long opposed the Fed's bond-buying stimulus
program, which currently sees the central bank buying $55 billion a
month in bonds. It is widely expected to be completed later this
year.
The Fed's bond-buying program has aimed to drive faster growth
by lowering borrowing costs, which should encourage more spending,
hiring and investment. But Mr. Fisher has repeatedly said he
believes the stimulus program offers little economic benefit, and
has said excessive Fed liquidity has distorted financial
markets.
Briefing reporters at a seminar hosted by the Texas Public
Policy Foundation, a conservative think-tank influential in the
state, Mr. Fisher on Wednesday didn't specify the rate at which he
believes the Federal Reserve Bank should reduce its bond
purchases.
"You don't go from Wild Turkey to cold turkey overnight," he
said, conceding that the program had helped businesses restructure
their balance sheets.
Sounding a positive note, he said the economy is "moving in the
right direction," with the country having now recovered over 95% of
the jobs lost during the recent recession.
While an unusually harsh winter dampened economic growth late
last year, even weather-wracked regions of the country have "come
back nicely," he said.
But the economy does continue to face some "structural"
problems, including a "jobs mismatch" in which there aren't enough
trained employees to fill certain job niches, Mr. Fisher said,
adding that monetary policy cannot fix these sorts of structural
issues.
"Try to find a good truck driver in West Texas," he said,
alluding to a region of the state that has enjoyed significant job
growth thanks to a booming energy sector.
Write to Nathan Koppel at nathan.koppel@wsj.com
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