Federal Reserve Bank of Dallas President Richard Fisher expressed concern about the policy of the Federal Reserve. He said interest rate could be raised too late, thus triggering inflationary pressures get out of control.
Richard Fisher noted that the pace of US economic growth is faster than in other countries. Mr. Fisher noted “we’re seeing wage price pressures in our survey that are the highest since before the recession” in the Dallas Fed district.
He warned this could happen to the nation as a whole if the Fed does not take measures in a timely manner.
The Dallas Fed chief has been an opponent of the Fed’s quantitate easing program. He claims the Fed supplies excessive amounts of liquidity to the financial system to support markets growth.
Richard Fisher also said sooner or later these steps would stop to yield results and the authorities would have to start normalizing their policy.
According to Fisher, the Fed must lift its benchmark interest rate in spring 2015 and set about the monetary policy tightening little by little.
