Fed's Fisher-inflation fears not driving up rates

LUBBOCK, Texas (Reuters) - Rising U.S. long-term interest rates do not reflect fears of higher inflation down the road, Dallas Federal Reserve Bank President Richard Fisher said on Tuesday.

Talking to reporters after a speech in Lubbock, Texas, Fisher said the steepening in the yield curve appeared to reflect an improvement in the economic outlook combined with the Treasury's huge borrowing needs.

There is no exact formula on when the Fed would need to start removing stimulus from economy, Fisher added.

Fisher said the bankruptcy of automotive giant General Motors would likely have a "dampening effect" on the U.S. recovery.

(Reporting by Ros Krasny, Editing by Chizu Nomiyama)