Richard Fisher, who spent a decade as the president of the Dallas Fed, can’t predict the future anymore than the rest of us. While his opinions often differed from that of his peers, we may be lucky at how often he proved wrong. At one time, he suggested our economy would see a recovery that didn’t so much resemble a “V”, but rather a “?”. In the explanation of how it resembles a “?”, it comes down to after a quick fix we turn stagnate.
Mr. Fisher reminded us in his many speeches throughout the years that there is no crystal ball. He often advised to take any economic forecast with “a grain of salt.” The one thing that was always clear in Mr. Fisher’s speeches was the level of uncertainty that is always at stake in the economy. “Even the saltiest of helmsmen cannot confidently navigate a ship in a dense fog.” ("Uncertainty Matters", 2013)
Considering the consequences of the Fed’s stimulus, Mr. Fisher believes that waiting to raise rates will cause a downturn in the economy. He just can’t say when that tomorrow will fall. “No idea. And I hope my concerns, which are only expressed as uncertainties, prove to be sleep lost and nothing more.” (Appelbaum, 2015)
The Dallas president discussed his opinions against auditing the Fed and inflation risks on the eve of his retirement from the Fed, closing with, “And now, in the spirit of what every signatory to S. 264 worries about, I’d be happy to avoid answering your questions.” ("Suggestions After a Decade at the Fed", 2015)
There has been a lot of talk in recent years regarding auditing the Fed. The idea of politicians having their hands in the cookie jar is a scary thought. Transparency via becoming a politicized Central Bank, wouldn’t that be a sure fire way to make the US a third world nation. Our house and senate often gets us into these messes, imagine for a second them having greater control over monetary policy. Speeches filled with vagueness over the last decade are more appealing.
Richard Fisher retired from the Fed on March 19, 2015. He wasn’t unemployed long, as he has already joined the Board of Directors for Pepsi Co.
Works Cited
"Suggestions After a Decade at the Fed". (2015, 02 11). Retrieved 03 27, 2015, from Federal Reserve Bank of Dallas: http://www.dallasfed.org/news/speeches/fisher/2015/fs150210.cfm
"Uncertainty Matters". (2013, 10 03). Retrieved 03 26, 2015, from Federal Reserve Bank of Dallas: http://www.dallasfed.org/news/speeches/fisher/2013/fs131003.cfm
Appelbaum, B. (2015, 3 20). Richard Fisher, Often Wrong but Seldom Boring, Leaves the Fed. Retrieved 3 25, 2015, from New York TImes: http://www.nytimes.com/2015/03/21/business/economy/richard-fisher-leave-the-fed.html?_r=0
Mr. Fisher reminded us in his many speeches throughout the years that there is no crystal ball. He often advised to take any economic forecast with “a grain of salt.” The one thing that was always clear in Mr. Fisher’s speeches was the level of uncertainty that is always at stake in the economy. “Even the saltiest of helmsmen cannot confidently navigate a ship in a dense fog.” ("Uncertainty Matters", 2013)
Considering the consequences of the Fed’s stimulus, Mr. Fisher believes that waiting to raise rates will cause a downturn in the economy. He just can’t say when that tomorrow will fall. “No idea. And I hope my concerns, which are only expressed as uncertainties, prove to be sleep lost and nothing more.” (Appelbaum, 2015)
The Dallas president discussed his opinions against auditing the Fed and inflation risks on the eve of his retirement from the Fed, closing with, “And now, in the spirit of what every signatory to S. 264 worries about, I’d be happy to avoid answering your questions.” ("Suggestions After a Decade at the Fed", 2015)
There has been a lot of talk in recent years regarding auditing the Fed. The idea of politicians having their hands in the cookie jar is a scary thought. Transparency via becoming a politicized Central Bank, wouldn’t that be a sure fire way to make the US a third world nation. Our house and senate often gets us into these messes, imagine for a second them having greater control over monetary policy. Speeches filled with vagueness over the last decade are more appealing.
Richard Fisher retired from the Fed on March 19, 2015. He wasn’t unemployed long, as he has already joined the Board of Directors for Pepsi Co.
Works Cited
"Suggestions After a Decade at the Fed". (2015, 02 11). Retrieved 03 27, 2015, from Federal Reserve Bank of Dallas: http://www.dallasfed.org/news/speeches/fisher/2015/fs150210.cfm
"Uncertainty Matters". (2013, 10 03). Retrieved 03 26, 2015, from Federal Reserve Bank of Dallas: http://www.dallasfed.org/news/speeches/fisher/2013/fs131003.cfm
Appelbaum, B. (2015, 3 20). Richard Fisher, Often Wrong but Seldom Boring, Leaves the Fed. Retrieved 3 25, 2015, from New York TImes: http://www.nytimes.com/2015/03/21/business/economy/richard-fisher-leave-the-fed.html?_r=0
