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17 Oct 2013
Fed's Fisher: Congress debt deal just a temporary solution
FXstreet.com (Barcelona) - Dallas Fed President Richard Fisher said today that the US Congress and President Barack Obama should do their utmost to resolve the country's fiscal problems, because a lack of a sustainable solution prevents the Federal Reserve from fighting the elevated unemployment effectively.
He stated that the current agreement is just a measure allowing for the delay of the final resolution and that US lawmakers should “get their act together.”
“Kicking the can down the road for a few months will not solve the pathology of fiscal misfeasance that undermines our economy and threatens our future,” Fisher said.
Furthermore, the Fed head suggested that the central bank's QE policy should continue unchanged at the upcoming meeting, despite the threat of a housing bubble. Jamie Coleman points out that the “EUR/USD close to session highs on the comments which suggests the Fed sees risks but is not prepared to address them.”
He stated that the current agreement is just a measure allowing for the delay of the final resolution and that US lawmakers should “get their act together.”
“Kicking the can down the road for a few months will not solve the pathology of fiscal misfeasance that undermines our economy and threatens our future,” Fisher said.
Furthermore, the Fed head suggested that the central bank's QE policy should continue unchanged at the upcoming meeting, despite the threat of a housing bubble. Jamie Coleman points out that the “EUR/USD close to session highs on the comments which suggests the Fed sees risks but is not prepared to address them.”