(Reuters) - The recent drop in U.S. and emerging-market stocks is not enough to cause the Federal Reserve to pause its efforts to reduce policy stimulus, Dallas Fed President Richard Fisher said on Monday.
“I‘m not surprised to see a reaction,” Fisher said on Fox Business television of the market drop over the last couple of days and weeks. Asked whether it would affect Fed policy, he said: “I don’t see anything changing as a result of that.”
Fisher, who backed the U.S. central bank’s decision last week to reduce the monthly bond-buying stimulus by $10 billion, said the Fed is focused in part on fixed income markets, noting the recent rally in seven- and 10-year bonds.
“And most important of all is the real economy” and whether it is growing with cyclical employment dropping, he said.
Reporting by Jonathan Spicer; Editing by James Dalgleish