Dallas Fed's Fisher: The Crack Stops Here
Holy crap! Now I remember why Richard Fisher is one of my favorite Fedheads: his large, low-hanging central banker cojones, obviously!
WSJ's Real Time Economics:
The Federal Reserve has provided all the support it can to the economy, and now is the time to allow those supportive policies to bear fruit, Bank of Dallas President Richard Fisher said in a Dow Jones Newswires interview Thursday.
“I would expect rates to stay low for an extended period…given the current forces acting on the economy,” he said. But Fisher added that putting a time frame on the continued maintenance of a near 0% fed-funds rate can’t be done. “People want specificity. You can’t provide specificity here,” he said.
Fisher stressed that when the Fed’s mortgage-buying program ends in March — it will have purchased $1.25 trillion in securities — it will be definitively over. “There may be some real demand for some of this paper” by private investors once the Fed is out of that market, so the exit could be a positive for investors, he said.
Fisher said he couldn’t envision the Fed re-entering the mortgage bond market “unless we have some ungodly crisis I cannot imagine.”
I don't want to ruin the squishiness of this moment by pointing out that he and his Federal Reserve System colleagues missed the last ungodly crisis too so I will keep my pierced little mouth shut.
While Bernanke may still believe in whatever it takes, Fisher is no crack pusher. The Fed will do "whatever is most practicable and efficient" to withdraw unprecedented liquidity from the system, he said, leaving the details of the Fed's proposed exit strategy (which yours truly still doesn't believe in) to some other Fed official. Classy, Dick, real classy.
And hey, if that doesn't work, they can just run up inflation, burn out savings, get the crack REALLY flowing and give us all good government jobs with bloated pension plans. Sure, a loaf of bread will cost you $50 but what will it matter?
these. Just say no, Janet. Seriously.