Why Fed dissident Fisher opposes further action

He's an inflation "hawk" who isn't worried about inflation, a former political candidate appalled by politics, a dissident who views himself as part of the team. An idiosyncratic figure, Richard Fisher has drawn attention lately as one of three members of the Federal Reserve's policymaking committee who have lined up against Chairman Ben Bernanke's steps to try to stimulate the economy. The three are a minority -- Bernanke's side has prevailed with seven votes -- but they represent the highest level of dissent at the Fed in nearly two decades. In a wide-ranging interview with The Associated Press, Fisher said his objections aren't with Bernanke, whom he describes as "an unbelievably decent human being." Rather, he argues that further efforts to lower interest rates won't do any good, will hurt people who need interest income and could threaten pension funds. And he says the Fed's actions give Congress an excuse to delay politically painful agreements on taxes and spending. "The more we offer accommodative monetary policy," said Fisher, president of the Federal Reserve Bank of Dallas, "the less incentive they have to pull their socks up and do what's right for the American people." Fisher says he sometimes worries about how history -- and his children -- will judge how policymakers handled the gravest economic and financial problems since the 1930s.

Link...