Federal Reserve Bank of Dallas President Richard Fisher said Friday he supports ending the central bank’s bond-buying stimulus program this year, while adding it is very likely that very low interest rates will prevail for some time to come.The same goes for Canuckistan:
“There is abundant liquidity to finance economic expansion, and the [Federal Open Market Committee] will assure that it remains affordable as long as the prospect of inflation rising above its 2% target remains in abeyance,” Mr. Fisher said in the text of a speech prepared for delivery before a local group in New Orleans.
Mr. Fisher is a voting member of the Fed’s monetary-policy setting FOMC this year. He has been a persistent critic of the recent round of Fed moves to stimulate growth, done mainly by buying longer-dated Treasury and mortgage bonds in a bid to lower borrowing costs to stimulate growth and lower unemployment. Heartened by signs of economic improvement, the Fed has been cutting the pace of its bond-buying program this year — the monthly buying rate now stands at $45 billion — and officials broadly agree the effort will be wound down this year.
“Barring some destabilizing development in the real economy that comes out of left field, I will continue to vote for the pace of reduction we have undertaken, reducing by $10 billion per meeting our purchases and eliminating them entirely at the October meeting with a final reduction of $15 billion,” Mr. Fisher said....MORE
Bank of Canada’s Stephen Poloz says Interest Rates to Remain Low for Years to Come
