Fed's Fisher: QE2 Bond Buying Ends In June As Planned |
| Wall Street Journal - Jun 7, 2011 |
The Federal Reserve has done more than enough to get the economy back on track, and it will do no more, a top Federal Reserve official said in an interview Tuesday with Dow Jones Newswires and the Wall Street Journal.
Federal Reserve Bank of Dallas President Richard Fisher said that when it comes to the central bank bond buying program referred to as QE2, "it's over at the end of June," as planned. "My vote will be not to extend it, and I doubt there will be much discussion about extending it" among other policymakers, Fisher said.
"We've done an awful lot" to aid the economy in light of zero percent interest rates and large scale purchases of things like Treasury and mortgage-related securities, Fisher said. "We've provided the fuel. The real issue is who is going to step on the accelerator" and boost economic activity, he said.
The central banker noted consumers and firms are still traumatized by the economic and financial difficulties of recent years, and that's part of why growth levels are still struggling. But he does expect activity to pick up: "The next half of the year will have better growth than we've seen recently," Fisher said. "It's not going to be robust" and he expects to see a "jerky motion" to activity. The official also noted unemployment won't fall as fast as many would like to see.
Read Full Article from Wall Street Journal
- Posted: 2011-06-07 13:40:23
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