* Will continue to vote for measured reductions of QE
* Refine forward guidance before considering rate hike
* Junk bond yields fallen "too much", but no sign of bubble
By Sakari Suoninen and Eva Taylor
FRANKFURT, Feb 27 Dallas Federal Reserve Bank
President Richard Fisher said on Thursday he would like the U.S.
central bank to continue scaling back its monthly bond-buying
stimulus at the current pace of $10 billion at each policy
If U.S. economic growth picked up significantly, Fisher
said, he "of course might be in favour of further reduction",
but even if he did support such a step, he said he knew he
"wouldn't win the argument".
"Reducing the amount we're adding ... is as much as I could
have hoped for, even though I have different views," Fisher told
reporters on the sidelines of a conference in Frankfurt,
"So I'm very happy with it, happy with the direction it's
going and I will continue to vote for these measured reductions
until we get rid of the programme."
Asked whether he expected interest rates to rise already
next year, Fisher said that depended on "how the economy
"Speaking for myself, I think we still have a great deal of
further refinement ... of when we might deal with the overnight
rate," Fisher said, possibly by adding another indicators.
The Fed has promised to keep rates near zero until well
after the U.S. unemployment rate falls below 6.5 percent. The
jobless rate currently stands at 6.6 percent.
Fisher, a former hedge-fund manager who is now among the
central bankers most worried about the risks posed by easy money
policies, said junk bond yields had come down "too much".
"In junk bonds, we're seeing an uber-narrow spread over
uber-narrow rates. These are what I call pin pricks in fabric;
they're not tears. I don't think these are signs of bubbles that
are broadly threatening financial stability, but I think they
need to be observed," Fisher said.
"As a market operator, which I was for a significant part of
my career, I ran a fund, these are the kinds of things that
would concern me."