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Fed's Fisher says opposes extending easing: report

WASHINGTON, March 29 | Tue Mar 29, 2011 10:38pm EDT

WASHINGTON, March 29 (Reuters) - A top Federal Reserve official said on Tuesday he would vote against any further monetary easing by the central bank after the current program is finished in June.

The comments by Dallas Fed President Richard Fisher boosted the dollar across the board in early Asian trade. "I will vote against ... any further extension of that program," Fisher said in an interview on Fox Business.

"I cannot foresee a circumstance where I can support any further liquidity in the economy."

Fisher is a voter this year on the Fed's policy setting panel, and has said before he would object to continuing the Fed's $600 billion program beyond its scheduled end June 30.

The Dallas Fed chief said the economic recovery is self-sustaining but is "too slow for comfort."

The Fed cut rates to near zero in December 2008 and then bought $1.7 trillion in longer-term securities to help drag the world's largest economy out of the most painful recession in decades.

When the recovery appeared to falter in 2010, the Fed initiated another round of bond buying in November which helped spur U.S. and global stock markets.

The Fed has shown no sign of abandoning its easy money policies even as other major central banks around the world have started or are contemplating tightening financial conditions to deal with worrisome inflation signs.

At its most recent meeting March 15, the U.S. central bank said the recovery was on a firmer footing but added that unemployment was high enough and inflation low enough to warrant continued monetary support for the economy.

Dollar/yen rose to about 82.75 yen from 82.50 yen after Fisher's remarks, while the dollar index .DXY edged up 0.1 percent against a basket of other major currencies.

(Reporting by Mark Felsenthal; Editing by Kim Coghill)

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