Fed’s President Says Currencies Can Be a Part of FOMC Debate

October 19th, 2010   Amanda Lee   Featured news

Dallas Federal Reserve President Richard Fisher said on Monday that hap-hazard movements in the currency markets might be taken as a factor to be considered by the members of the Federal Reserve’s policy-setting committee but that it is just one of the many factors involved in the policy making.

When Fed’s President, Fisher, was asked about if the Federal Open Market Committee will include and discuss the role of fluctuating currencies among other issues, he said that all the members of the committee brought their opinions to the discussion table before other members of the committee, so depending on person to person, this might be put forward on the discussion table as a suggestion or factor to be considered.

He was of the opinion that the unemployment percentage in the economy was a key factor and that the Federal Reserve needed to microscopically pursue and analyze the data about retails sales and inflation. He also said that the reality is that the U.S. economy is hardly on the path of the recovery and is facing all these issues during the process of recovery.

Fisher said that, if found necessary, the Federal Reserve would institute further steps and actions to bring the economy back on the track of success and prosperity. But the issue is that the Federal Reserve can’t achieve it all alone, and therefore need the technical assistance and cooperation from the fiscal and the regulatory institutions and authorities.

He however made a very valid point by saying that there existed enough liquidity in the financial markets but not all of that was being well utilized by the financial institutions.

Written by Amanda Lee

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