With the economy starting to improve, the Federal Reserve should begin to end its bond purchases, Richard Fisher, Federal Reserve Bank of Dallas President, told CNBC’s “Closing Bell” on Thursday.
“I think it’s really time to taper this off,” Fisher said. “It doesn’t mean stop it. We’re not going from Wild Turkey to cold turkey. But I do think we’ve run up to the limits of the efficacy of what we’re doing. It’s a good time to do it.”
While the bond-buying program has served a purpose, the Fed official compared the Fed’s $85 billion in monthly asset purchases to a narcotic — “monetary ritalin” — warning that there’s a risk the markets and the economy become too addicted.
Fisher has been a critic of the Fed’s easy monetary policy warning that it won’t do much to support job creation and may actually hurt the economic recovery.
The economy is improving, Fisher said, but job creation isn’t picking up fast enough.
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