Dallas Fed's Robert Fisher Says Will Oppose Easing, As Fed Nears Tipping Point

In a speech given to the Society of American Business Editors and Writers in Dallas, Dallas Fed President Robert Fisher said that it would be wise of the FOMC not to pursue further easing. He's already a known hawk, one of two on the FOMC, bit this speech shows him breaking ranks a little. He'd even like to end QE2 prematurely.

“Just as we pressed on in doing our duty through extraordinary, exigent measures, we must now discipline ourselves to just as persistently normalize our operations in a timely way,” said Fisher. “I see many risks to the Fed overstaying its welcome.”...

There are likely to be some “unpleasant” inflation reports in coming months, Fisher said, but the recent spike from commodity prices may be short lived.

“Nonetheless, adding still more liquidity, or not withdrawing in a timely manner what we have provided in abundance, would do nothing to quell emerging inflationary pressures and might well compound them,” Fisher said.

Part and parcel of his hawkish stance is his conviction that the U.S. economy is recovering and that recovery is becoming self-sustaining. With that assumption, he seems to be out on a limb somewhat. For now, his voice is a dissenting one. Dennis Lockart, for example, disagrees.