Fed's Fisher says Obamacare hurts job creation, QE no help

DALLAS Thu Sep 5, 2013 4:31pm EDT

Federal Reserve Bank of Dallas President Richard Fisher (R) testifies alongside FDIC Vice Chair Thomas Hoenig before the House Financial Services Committee hearing on ''Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts'' on Capitol Hill in Washington June 26, 2013. REUTERS/Yuri Gripas

Federal Reserve Bank of Dallas President Richard Fisher (R) testifies alongside FDIC Vice Chair Thomas Hoenig before the House Financial Services Committee hearing on ''Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts'' on Capitol Hill in Washington June 26, 2013.

Credit: Reuters/Yuri Gripas

DALLAS (Reuters) - The new U.S. healthcare law deters hiring because employers are wary of taking on new staff when they do not know how much it will cost to provide benefits, a top Federal Reserve official said on Thursday.

Meanwhile, the U.S. central bank's $85 billion-a-month bond-buying program, aimed at boosting hiring, actually does little in that regard, Dallas Fed President Richard Fisher said.

"I was against QE3," Fisher said. "I don't believe it had any efficacy" in terms of job creation.

Fisher is an opponent of the Fed's bond-buying program and has long argued that the government's lack of clarity on new rules and fiscal policies is holding back the economy.

(Corrects Fisher quote in third paragraph)

(Reporting by Lisa Garza, Writing by Ann Saphir; editing by Chizu Nomiyama)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.