Friday, March 1, 2013

Dallas Fed’s Fisher: Fed Should End its ‘Monetary Ritalin’

Now is the time of the Fed to end its “monetary Ritalin,” says Federal Reserve Bank of Dallas President Richard Fisher.

“I think it’s really time to taper this off,” Fisher told CNBC. “It doesn’t mean stop it. We’re not going from Wild Turkey to cold turkey. But I do think we’ve run up to the limits of the efficacy of what we’re doing. It’s a good time to do it.”

The Fed is buying $85 billion of mortgage-backed securities and Treasury holdings a month in an effort to keep interest rates low and spur the economy and reduce unemployment.

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