Monday, April 2, 2012

Dallas Fed President Contradicts Bernanke

In an interview on CNBC today with Dallas Fed President Richard Fisher, henoted that “it's a little bit premature to talk about tightening.” But, although tightening was still a long time away, Fisher  stated that the FED should refrain from using further stimulus.  These statements suggested that the Fed was planning to sit pat for at least the short term.

Fisher’s words contrasted to last week’s speech from Fed Chairman Ben Bernanke were he said that unemployment levels remained high and that the Fed would need to apply new stimulus to speed up the US’s economic growth.

For traders, Fisher’s interview definitely added to the cloud of uncertainty in the Fed, and we may not get any clarity until the next FOMC Meeting as a result.

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