Fed’s Fisher Slams Bernanke’s “Ineffective” Policies

Dallas Fed President Richard Fisher is clearly not a fan of Ben Bernanke’s latest monetary policies.

At the Council of Foreign Relations on Tuesday, Fisher stated that “The monetary accommodation we have thus far implemented has failed to deliver.  There is significant risk that the policies recently undertaken by the FOMC (Federal Open Market Committee) are likely to prove ineffective and might well be working against job creation.”

Fisher was one of three FOMC members – along with Charles Plosser and Narayana Kocherlakota – who dissented at the previous two Fed meetings with respect to leaving interest rates near zero through mid-2013 and to implementing Operation Twist.

The Dallas Fed President later said that “I believe that the Fed cannot deliver on its congressionally mandated task of seeking full employment unless it delivers first on its mandated duty of warding off both inflation and deflation.”

Other noteworthy headlines from Fisher’s comments, via Bloomberg, included the following:

Fisher Says Recent FOMC Policies Likely To Be Ineffective

Fisher Says Fed Policy `Has Yet To Show Evidence Of Working’

Fisher Says Benefits Of Operation Twist Don’t Outweigh Costs

Fisher Sees ‘Moral Hazard’ In Being Overly Accommodative

Fisher Says Further Monetary Accommodation ‘Pushing On String’

Fisher Says Banks’ Earning Power Will Come Under Added Pressure

Fisher Says Twist To Expose Fed To Losses When Rates Rise