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Fed's Fisher: Jobs, not inflation, US' biggest economic problem
May 30, 2012 / 6:23 PM / 6 years ago

Fed's Fisher: Jobs, not inflation, US' biggest economic problem

SAN ANTONIO, May 30 (Reuters) - The lack of job creation, not the threat of inflation, is the biggest problem for the U.S. economy, a top Federal Reserve official known for his hawkish views on inflation said on Wednesday.

“We have not been seeing a lasting inflationary impulse here,” Dallas Federal Reserve Bank President Richard Fisher said at a community forum in San Antonio.

Fisher, who is not a voter on the Fed’s policy-setting panel this year, reiterated his view that the Fed has done enough, and perhaps “too much,” to stimulate the economy by easing monetary policy.

The U.S. central bank has kept interest rates near zero since December 2008 and projects it will keep them there through late 2014.

Citing a refrain from nearly all of his public speeches over the past 18 months, Fisher said he believes the main obstacle to economic growth and job creation is the lack of clarity on national regulatory and tax policy.

The economy is running “just above stall speed,” he said, but is still moving forward.

Uncertainty is holding back hiring, he said, adding it is up to Congress, not the Fed, to fix the problem.

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