Former Dallas Fed President Offers Negative Assessment on US Policy

The Federal Reserve is the only institution in Washington acting to support economic growth, but its low-rate policy could be backfiring, former Dallas Fed President Richard Fisher said Thursday.

Fisher offered his assessment one day after the Federal Open Market Committee left rates unchanged and more members of the policymaking group indicated they anticipate just one hike this year rather than two.

Congress’s failure to stimulate the economy through fiscal policy has forced the Fed to keep monetary policy accommodative, he told CNBC’s “Squawk Box.” But low rates are taking a toll on community and regional banks that lend to middle-income groups, he said.

That pressure, combined with over-regulation, is retarding growth, he said.

“There’s very little incentive, together with the pincer movement of regulatory excess, for people to go out there and lend into job-creating enterprises,” he said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza