“Federal Reserve Bank of Dallas President Richard Fisher said that a recent drop in equity prices is no reason for the central bank to intervene to boost the economy.
“Markets are manic depressive, they come and go,” Fisher told reporters Tuesday in Dallas when asked if slumping markets and slower-than-expected employment gains had changed his outlook for Fed policy. “The key to success here is not further monetary accommodation.”
The U.S. central bank last month said the recovery will “pick up gradually,” and upgraded its forecasts for inflation, growth and unemployment for this year. Reports released since then have suggested a more tempered outlook for the economy, with employers adding the fewest number of workers in six months in April.
Fisher said that business owners want clarity on health care costs and taxes, and that trillions of dollars are sitting on sidelines until then. He spoke to reporters following an appearance at an economic forum put on by the Dallas Convention and Visitors Bureau.”
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