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The Ticker

Fed's Fisher says QE is 'beer goggles' for investors

Mixes not two but three metaphors for his conclusion

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Dallas Federal Reserve Bank President Richard Fisher, always one for colorful speeches, said he is confident and certain that it's time to come down from the $1 trillion a year money printing and bond buying.

“...QE [quantitative easing] puts beer goggles on investors by creating a line of sight where everything looks good...,” Fisher said.

"The housing market is well along in repair; the economy is expanding; cyclical unemployment is declining," he said in formal remarks Tuesday. "To be sure, there will be individual data points that appear to challenge confidence, like the just-released employment report for December. But I believe the odds favor continued economic progress. And I believe that continuing large-scale asset purchases risks placing us in an untenable position, both from the standpoint of unreasonably inflating the stock, bond and other tradable asset markets and from the perspective of complicating the future conduct of monetary policy."

Fisher mixed not two but three metaphors for his conclusion.

"The eye of the needle of pulling off a clean exit is narrow; the camel is already too fat. As soon as feasible, we should change tack. We should stop digging. I plan to cast my votes at FOMC meetings accordingly," he said.

The full text of Fisher's remarks can be viewed here.

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