The president of the U.S. Federal Reserve Bank of Dallas believes the nation needs to continue lowering bonds purchase rates despite the slow economic growth through the harsh winter weather. Bank president Richard Fisher thinks the economy is moving in right direction and he favors bond buying trims at each Federal Open Market Committee. Despite the sales drop at U.S. retailers being the lowest the economy has seen since June 2012, according the most recent figures from the Commerce Department.
In an interview with Bloomberg Radio in Dallas Fisher said, “I am not persuaded continuing to taper should be altered. Obviously, weather is playing a significant role here.”
President Fisher who will vote on bond buying policies this year, still thinks the economy is moving in the right direction and doesn’t believe a change is necessary unless something really drastic happens in the economy.
If you look at activity in the west and the southwest and Florida, you are seeing pretty robust activity,” Fisher said.
Some lower than expected data on manufacturing and retail sales followed two straight employment reports that failed to reach the bar of what economists were hoping see. Payrolls grew by 113,000 last month and by 75,000 in December last year, the most unconvincing gains seen in recent years. The U.S. Department of Labor also reported the jobless rate fell last month to 6.6 percent.
The California native Fisher has been president of the Bank of Dallas since 2005, before leaving a firm where he served as a chief advisor to the White House regarding economy issues and policies. The Federal Reserve plans to continue tapering bond buying at a pace of $65 billion monthly.
Lower Bond Rates? Fed Reserve President Fisher is in favor despite harsh winter