Policy impact of Fed bond buying fading over time: Fed's Fisher

WASHINGTON Wed Jan 16, 2013 8:27pm EST

Richard Fisher, president and CEO of the Federal Reserve Bank of Dallas, speaks during a conference before the Committee for the Republic Salon at the National Press Club in Washington January 16, 2013. REUTERS/Jose Luis Magana

Richard Fisher, president and CEO of the Federal Reserve Bank of Dallas, speaks during a conference before the Committee for the Republic Salon at the National Press Club in Washington January 16, 2013.

Credit: Reuters/Jose Luis Magana

WASHINGTON (Reuters) - Massive asset purchases by the U.S. Federal Reserve likely faces diminishing returns in terms of the program's desired monetary policy impact, a senior Fed official said on Wednesday.

"With regard to my own views on monetary policy ... I believe that it is increasingly having a lesser impact as we go through time," Dallas Federal Reserve President Richard Fisher told reporters in a response to a question about asset buying.

"Rates are the lowest they have been in a lifetime. But they have not come down as quickly as I would like ... to see, and I don't think, therefore, our policy has been as effective as we would like it to be," Fisher said.

He was speaking after delivering a speech at the National Press Club on "too big to fail banks."

(Reporting By Alister Bull; Editing by Eric Beech)

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