Fisher Says Fed Doesn’t Want to See Value of U.S. Dollar Eroded

Dallas Fed President, Richard Fisher, argues that the central bank’s decision to undertake a second round of large-scale Treasury purchases may have been the wrong decision. While he agrees that we need to ensure that US currency isn’t losing its purchasing power he also argues “we don’t want inflation” and is concerned about “protectionist impulses out there.” He hopes that the Congress and Senate will start incentivizing businesses and gaining fiscal control. While I don’t completely agree that we don’t want to see inflation, I do agree with Fisher’s argument that we need to start incentivizing businesses and improving fiscal policy. Even at the EMF conference, the panelists said that we need good fiscal policy with monetary policy to make a real impact. Monetary policy alone won’t cut it. I agree and I hope to start seeing more fiscal policies introduced.