"I think we ought to dial it back." R Fisher, president of the Federal Reserve Bank of Dallas
"I don't want to go from wild turkey to cold turkey," Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday. "I think we ought to dial it back." Mr. Fisher is part of a contingent of Fed hawks who are wary of the central bank's easy-money policies.
The Fed also wants to transmit the message that the withdrawal of stimulus will not necessarily be smooth and steady. Rather, the Fed might tighten policy a bit, then wait to see what happens, then tighten some more.
In any event, it seems the big moment is finally upon us. The Fed is finally serious enough about starting its "exit" that it is telling Wall Street to get ready.
It is coming and a pullback will ensue. The problem is that investors have taken the Fed at it's word and keep running the market up to the point where a crash will hurt more and more. If the Fed doesn't stop it soon the crash will put the market and economy in a worse place than if the Fed had done nothing and let the market recover on it's own. Face it, recovery requires pain and a natural process..............the Fed has bypassed that process and it still has to happen. The longer they allow the market to artificially rise on their "put" the harder the fall will be. It's coming, get ready for it.