U.S. ‘Drowning In Unemployment,’ Says Federal Reserve Member
On Friday, Dallas Federal Reserve President Richard Fisher said the U.S. is “drowning in unemployment” and that the Fed’s monetary easing was not the solution; certainty on taxes and regulation are what’s needed to jump start hiring.
Mr. Fisher’s comments, delivered during a speech at the University of Texas at Dallas, highlighted the intractable nature of unemployment over the last few years and the folly of so-called “quantitative easing” by the Federal Reserve.
“A short-term fix to the fiscal cliff will do nothing but push out the envelope of indecision and we will continue to be plagued by high unemployment,” Fisher said. “We’ve had a recovery that is quite disappointing….We’ve never been here before so none of us know how we’re going to navigate out of this particular quadrant of the liquidity pool in this ocean of money. And what I’m concerned about is that we may be painting ourselves into a corner,” he said.