Hawkish-Dallas Fed President

Maybe Dallas Fed President Fisher will be the next Fed Chairman. Who knows. Below some highlights from his speech. Full version here.

“My colleagues and I are professionally beholden to beware of short-term fixes that might contradict, or place in jeopardy the long-term duty and credibility of the central bank.”

“As I have said repeatedly, we have filled the gas tanks of the economy with affordable liquidity,” he said. “What is needed now is for employers to confidently step on the pedal and engage the transmission that will use that gas to move the great job-creating machine of America forward.”

“If I believe further accommodation or some jujitsu with the yield curve will do the trick and ignite sustainable aggregate demand, I will support it,” he said. “But the bar for such action remains very high for me until the fiscal authorities do their job, just as we have done ours. And if they do, further monetary accommodation may not even be necessary.”