GAINESVILLE, Texas (Reuters) - Dallas Federal Reserve President Richard Fisher said Tuesday he had opposed the Fed’s recent bond-buying programs because he did not think they are very effective in bringing down the high jobless rate, a top Fed official said on Tuesday.
“I don’t think it’s as effective...as my colleagues do,” he told the Gainesville Area Chamber of Commerce.
The Fed last Wednesday said it would keep interest rates near zero until unemployment -- now at 7.7 percent -- fell at least to 6.5 percent, as long as inflation does not rise above 2.5 percent. It was the first time the Fed had picked a specific marker for unemployment to guide policy.
The Fed also decided to buy $45 billion of Treasury bonds monthly, on top of the $40 billion of mortgage-backed securities it has been buying each month since September, until it sees a substantial improvement in the outlook for the U.S. labor market.
Reporting by Ann Saphir; Editing by Chizu Nomiyama