Dallas Fed President Richard Fisher is renowned as one of the most-hawkish FOMC members but at the moment he isn’t sounding any concerns about inflation.
Right now, we’re all much closer together,” said Mr Fisher in the Financial Times. “Right now it’s really a question of when [to raise rates]. Even I wouldn’t advocate moving today.”
Although Mr Fisher is often portrayed as an ‘inflation nutter’, he makes clear his concerns are not short term. “No, I don’t see [inflation risks] right now. I can see us lifting up gradually to the 2 per cent target. I can see us even running over that for a little while.”
Fisher has been tip-toeing in that direction for months but he’s now also adding that when the Fed does begin raising rates, it should be very gradually.
“I would rather move a little bit earlier but very gradually rather than have to move sharply, late,” he says. “That doesn’t mean you move every quarter…it’s really a question of feel, and seeing how things are digested.”
In all likelihood, Fisher won’t be around when rate hikes are finally delivered — he’s scheduled to retire in March.
