Dallas Federal Reserve President Richard Fisher, voting member of the FOMC, spoke this morning on CNBC Squawk Box saying there is no need for third round of Asset buying, QE3.

The next FOMC meeting will be held on Wednesday June 22nd.

The following are the highlights of FED Fisher's comments on CNBC:

  • No need for third round of Asset Buying, no need for QE3
  • Since recovery began 38% of all jobs created have been from the state of Texas
  • FED put a lot of liquidity into the system
  • Liquidity not the problem right now
  • FED provided the fuel, we just need someone to drive the car, accelerate the pedal to create jobs for the country
  • FED provided the liquidity but cannot push the gas pedal
  • Friday's jobs report not a game changer
  • Slow process
  • FED will be clearer about intentions over the next few meetings
  • Lifting fiscal policy fog necessary to get business hiring
  • What more can the FED do
  • Time to stand back & let economy heal, agrees with Stephen Roach
  • Re-balancing needed - more saving less spending
  • Felt the costs of further QE outweighed potential benefits
  • QE2 could be responsible for the rising commodity prices
  • 3-4% growth possible for second half of year
  • Balance sheets in great shape in America
  • What more can the FED do

FED's Fisher sounds very hawkish and feels it may be time for the FED to stand back and let the economy heal.

The one thing that is universally agreed upon at the FED is the end of QE2 at the end of June. Look for more comments at the next FOMC meeting to suggest that the FED will stand down but will be monitoring future forecasts.

End of QE2 should bring a relief rally for the US dollar with a sell-off in equities.

See below for the interview on CNBC.