Fed's Fisher: monetary policy done and now its congress's turn, and, go ahead and end the Fed's mandate for full employment

Richard Fisher, President of the Dallas Fed comes out with his thoughts on the limits of monetary policy.  Like we've said before, printing money does not create jobs.  Neither does congress for that matter.  But congress can do much more to create the conditions that the private sector will create jobs.  Their fiscal and regulatory policies create business conditions under which companies will make investments or not. 

The main crux of his speech was that, the Fed has done all they can do, the ball is in Congress's court.  Via Bloomberg:
Federal Reserve Bank of Dallas President Richard Fisher said monetary policy isn’t a “salve for the nation’s fiscal pathology” and that Congress should focus on reducing the federal deficit and creating incentives for companies to grow.

“There are limits to what we can do on the monetary front to provide the bridge financing to fiscal sanity,” Fisher, 61, said in a speech in New York today. “The Fed has done much, in my words, to provide the bridge financing until the new Congress gets to work restructuring the tax and regulatory incentives American businesses need to confidently expand their payrolls and capital expenditures here at home.”
And in a slap to Ron Paul, Fisher said the following: 
“Those lawmakers who advocate ‘Ending the Fed’ might better turn their considerable talents toward ending the fiscal debacle that has for too long run amuck within their own house.  The Fed does not create government debt; fiscal authorities do.”
He does have a point.  I already like this guy better than the others.  He also acknowledged the difficulty of the Fed's dual mandate of both price stability and full employment:
“It would not break my personal heart if we ended up with a single mandate,” Fisher said in response to audience questions after a speech in New York. “The employment mandate is a bit of a slippery slope, it gets you into political issues.”


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