Fed's Fisher: Economy starting to move, not accelerating

ABU DHABI Tue Mar 26, 2013 7:51am EDT

Federal Reserve Bank of Dallas President Richard Fisher speaks about the concept of breaking up 'too big to fail' banks to a breakout group at the Conservative Political Action Conference (CPAC) in National Harbor, Maryland, March 16, 2013. REUTERS/Jonathan Ernst

Federal Reserve Bank of Dallas President Richard Fisher speaks about the concept of breaking up 'too big to fail' banks to a breakout group at the Conservative Political Action Conference (CPAC) in National Harbor, Maryland, March 16, 2013.

Credit: Reuters/Jonathan Ernst

ABU DHABI (Reuters) - The economy is beginning to move forward slowly but not accelerate, a senior Federal Reserve official said on Tuesday.

Dallas Fed President Richard Fisher, speaking at a financial conference in the United Arab Emirates capital, also said he was confident that the economy would keep growing at its current 2 to 3 percent pace.

He described this week's international rescue plan for indebted Cyprus, which involves penalizing big depositors at its banks, as unique, since the island was a depository for hot money.

But he added that the difficulty with the rescue was what it signaled to other depositors around the world, since depositors ran economies.

(Reporting by Martin Dokoupil and Stanley Carvalho; Editing by Andrew Torchia)

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