Don’t count Dallas Fed President Richard Fisher as a big fan of quantitative easing — let alone of the congressional gridlock we’ve heard so much about recently.
Fisher (right) lays out the case against quantitative easing in a speech Monday, arguing not for the first time that the economy looks weak – but that further Fed easing carries bigger risks than benefits.
“I asked that the FOMC consider that we might be prescribing the wrong medicine for the ailment from which our economy is suffering,” Fisher said in a speech before the Association for Financial Professionals in San Antonio. He continues:
Fisher also notes that the Fed is positioning itself as the buyer of pretty much all government debt to be issued in the coming months, to its peril.
That brings him to a pair of contrasting cases.
Sobriety, debauchery, incontinence: so many metaphors. And yet in the end, it comes down to what our elected leaders are and are not willing to do, Fisher notes, very much in concert with recent comments on behalf of Fed chief Ben Bernanke.
True enough, but don’t go holding your breath on that one.