LONDON, March 21 A top U.S. Federal Reserve
official critical of the U.S. central bank's super-easy monetary
policy on Friday questioned the very core of the Fed's current
approach, which rests on giving markets a better sense of the
future path of interest rates.
That approach, known as forward guidance, received a
makeover on Wednesday, when Janet Yellen wrapped her first
policy-setting meeting as Fed chair with a decision to jettison
narrow economic guideposts in favor of a much broader set of
measures to determine the timing and pace of future rate hikes.
Dallas Federal Reserve President Richard Fisher, in brief
remarks released ahead of a planned speech in London, appeared
to question even the basis of that approach, which Yellen has
credited with keeping borrowing costs lower than otherwise and
boosting an economy in great need of stimulus.
"Is 'Forward Guidance' a crotchet .... to which exaggerated
importance is attributed?," Fisher said in the brief prepared
remarks. "Have we at the (Fed) just taken up another fad? Or is
this a real, lasting practice?"
Fisher did not answer that question in the prepared remarks.
Fisher is a member of the Fed's policy panel this year and
is one of the U.S. central bank's most hawkish policymakers.
He wants the Fed to wind down its bond-buying stimulus as
quickly as possible.
(Reporting by Ana Nicolaci da Costa and Natsuko Waki; Editing
by Chizu Nomiyama)