Tags: Fisher | cliff | Fed | limit

Fed’s Fisher: Central Bank Won’t Catch Markets if US Falls Off Fiscal Cliff

Wednesday, 14 Nov 2012 12:24 PM

By Larry Kudlow

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
In the event the United States goes off the fiscal cliff, don’t expect the Federal Reserve to shield markets from the worst.

In an interview on the Kudlow Report, the hawkish Dallas Fed President Richard Fisher said he’d resist that kind of intervention.

“I do not see us as that kind of safety net,” he said. “There’s got to be a limit. In committee, we’d have to decide what kind of limit, but there’s got to be a limit.”

That means if Congress plays partisan politics and a big tax hike kicks in, the first quarter turns negative and lawmakers are still scurrying around Washington, unable to reach a deal — don’t expect a massive bond-buying program.

It’s not coming.

Fisher went on to say lawmakers have to step up — and if need be he thinks the Fed should force their hand.

“Fiscal authorities must get their act together,” he said. “We can’t just rely on monetary policy — we can’t have a monetary policy of infinity and beyond.”

“The Fed has been carrying the ball,” Fisher added. “But we can’t carry the ball all by ourselves.”

*It's worth noting in the interview Fisher emphasized that what's outlined above was strictly his opinion and not that of Fed Chairman Ben Bernanke.

“The more we do at the Fed, the more excuses politicians have to do nothing.”

And Fisher is tired of the indecision.

To find out more about Lawrence Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.

© Creators Syndicate Inc.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved