A "Feel Good" Fed Story: Woman Thanks Dallas Fed's Fisher, Does Not Punch Him in the Face for F&^*ing Up Economy
As we all know, Richard Fisher is pretty far from the bottom on my list of favorite Fedheads (he lingers somewhere around Philadelphia Fed's Chuck Plosser, both of them being below Richmond's Jeffrey Lacker of course) and would be higher up if it weren't for that strange and hard to pin down skeezy quality about him.
In the midst of all the doom-and-gloom, pitchforks, and central-banker-hating, I guess it's nice to hear that at least one person appreciates what the Fed is trying to do. Wait, let me correct that statement. I guess it's nice to hear that at least one person appreciates what the Fed claims it is trying to do. There, that's better.
Via the Houston Chronicle:
A woman recently approached Richard Fisher in a Dallas Starbucks and thanked him.
She’d refinanced her mortgage at 4.3 percent, down from more than 6 percent, and she wanted him to know she appreciated what the Federal Reserve had done to lower rates.
“For a banker to hear ‘thank you’ is extremely rare,” Fisher said.
The story, which the president of the Dallas Federal Reserve Bank related during a Thursday afternoon interview at the Chronicle, is significant not just because the Fed has driven interest rates to historic lows, but because it’s also rare for a regional Fed president to be recognized in public.
Having overseen the injection of trillions of dollars into the economy in recent months — a process often referred to, incorrectly, as “printing money” — the Fed has taken a higher public profile than many of its officers, including Fisher, find comfortable.
Lower mortgage rates are among the most tangible results of the Fed’s actions. Late last year, the central bank cut to almost zero the fed funds rate, or what banks charge to lend to each other.
One of the reasons for the aggressive move was a huge number of variable rate mortgages that will reset later this year, a process that will continue through 2011. The Fed governors worried those resets would trigger a new wave of foreclosures that would prolong and deepen the recession.
“For me, that was the housing crisis that was coming,” Fisher said. “If we hadn’t done what we did, it would made it a lot worse than what we’ve seen.”
Fisher struck a consistent theme, echoed by many of his regional counterparts and Fed Chairman Ben Bernanke, that the economy is showing the early signs of improvement.
“We are coming back from the abyss,” he said, but he cautions that “it’s going to be a slow slog for some time.”
Thank you, Captain Obvious! You can head back to the FAILboat now... why is the Houston Chronicle licking the Dallas Fed's balls anyway? I don't get it. Stay away from the Kool-aid, kids, it's powerful stuff...