Dallas Fed hawk Fisher warns of 'suboptimal' economic growth, opposes further easing

Richard Fisher, president of the Dallas Federal Reserve Bank, said he is concerned that the economy "will be sailing forward at a suboptimal speed" and blamed Washington for uncertainty over tax policies and regulations. He further stated that further monetary easing is not necessary, and, if applied, would likely make things worse.

In a speech to the Greater San Antonio Chamber of Commerce in, Fisher said that the "capricious" manner in which Washington politicians drafted health-care legislation, among other laws, had pushed businesses into the shadows, hindering their operations.

"They are calling time-outs and heading to the sidelines while they wait for the referees to settle on the rules of the game," Fisher said, using his well-known sports imagery.
"No amount of further monetary policy accommodation can offset the retarding effect of heightened uncertainty over the fiscal and regulatory direction of the country.”

Thus, in spite of historically low interest rates, U.S. corporations are reluctant to spend money since they fear how regulations overseeing taxes, health care and the financial system will impact them.