Fed's Fisher: countries that used cheap money well will do fine

FORT WORTH, Texas Fri Jan 31, 2014 2:26pm EST

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

FORT WORTH, Texas (Reuters) - Mexico, Poland and other countries that used cheap money from the Federal Reserve's massive bond-buying programs to restructure their economies will do well as the Fed reduces the cheap money that resulted, a top Fed official said on Friday.

Other countries, like Brazil, that used the money to boost consumption will have a hard time, Dallas Federal Reserve Bank President Richard Fisher, who votes this year on the Fed's policy-setting panel, said at the Neeley School of Business at Texas Christian University.

The Fed does not make U.S. monetary policy based on the needs of other countries, he said, some of which have experienced market turmoil as the Fed cuts its bond-buying.

"It is not in our purview to be the world's central bank," he said.

(Reporting by Ann Saphir; Editing by James Dalgleish)

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