Federal Reserve Bank of Dallas President Richard Fisher said he is seeing “minor momentum” in the U.S. economy, with business officials he talks with saying they are “not moving backward.”
“Clearly, the economy is anemic,” he said today in an interview with Bloomberg Radio’s “The Hays Advantage” with Kathleen Hays. “Our job is to refuel the tanks, we’ve done that.” Now, “it’s up to the fiscal authorities” to do their work, he said.
Fisher reiterated his view that the central bank’s decision last month to push down longer-term interest rates may prove ineffective. He joined presidents Charles Plosser of Philadelphia and Narayana Kocherlakota from Minneapolis in dissenting for a second straight month, posing the most opposition within the Federal Open Market Committee in almost 19 years.
Manufacturing in the U.S. unexpectedly accelerated in September as production and exports picked up, easing concern the world’s largest economy is stalling, according to the Institute for Supply Management’s index released today.
“There is some minor momentum in the economy,” Fisher said. Business leaders he said he knows are saying “that they are barely moving forward, but they are not moving backward.”
In a program announced last month, the Fed plans to replace $400 billion of short-term debt in its portfolio with longer-term Treasurys maturing in six to 30 years. The plan is aimed at reducing borrowing costs and helping the world’s largest economy recover.
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