Former Fed President Says The Fed Has 'No Ammunition Left'
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Richard Fisher, the former Dallas Fed president, thinks the Fed is out of tools to help markets.
In an interview with CNBC, Fisher said the Fed’s quantitative-easing stimulus program “front-loaded” the market after the financial crisis. Fisher says the Fed has no way to deal with the fallout from the policy.
“I don’t think there can be much more accommodation,” Fisher says, “The Federal Reserve is a giant weapon that has no ammunition left.”
Fisher is in lockstep with those saying the Fed inappropriately distorted markets since the crisis.
“Everybody was looking for the Fed to float all boats. In my opinion, they got lazy,” Fisher says.
But it isn't all the Fed's fault—Fisher says the central bank was backed into a corner trying to mop up the financial crisis. [BI]