Former Fed President Fisher: Is The Fed Waiting On 'Full Full Full Employment'?
Richard Fisher, the former president and CEO of the Federal Reserve Bank of Dallas, was a guest on CNBC on Monday to talk about the hot topic of interest rates.
According to Fisher there is "very little market expectation" for a rate hike. On the one hand, the CPI is "running hot" and the Fed could be waiting to achieve "full full full employment."
Fisher added that the Federal Reserve could be guilty of "gutting the financial institutions" while other financial related entities such as insurance companies are "beginning to feel threatened and are in need of some relief."
Having said that, Fisher would advocate raising rates because doing so "won't do much damage to the economy," and it could also give "breathing room" to financial institutions that "we need to be prosperous."
"Now — I don't they will do it," he added.
Fisher further suggested that the regulatory environment has become "a little bit too harsh and it is difficult for these institutions to live the kind of life that they were used to."
Bottom line, middle class America looks to these very institutions for their savings, the Federal Reserve's policy and the overall regulatory environment.
"The market is too dependent on the Fed," he concluded. "We don't have strong earnings, we have modest economic growth, but it is Fed, Fed, Fed, central bank, central bank, central bank. This is the problem."
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