By Ann Saphir
NEW YORK Feb 27 One of the Federal Reserve
official's biggest critics of ultra-easy U.S. money policy on
Wednesday suggested his home state of Texas should issue
100-year bonds to take advantage of historically low interest
"Might it make sense for Texas to issue ultra-long bonds at
currently prevailing ultra-low rates to finance the state's
longer-term infrastructure needs?" Richard Fisher, president of
the Dallas Federal Reserve Bank, said in an address at Columbia
University. "I have in mind a Texas Century Bond....If ever
there were a window for such an issuance, it surely would be
Fisher is among the Fed's most vocal opponents of the
central bank's latest round of quantitative easing, warning that
the bond buying will do little to boost job creation and could
in fact slow the recovery.
But his discomfort with super-easy monetary policy has not
stopped him from thinking that his own state might do well to
So-called century bonds, which have a maturity of 100 years,
are a rarity in the $3.7 trillion municipal market. Mexico,
Coca-Cola and the Massachusetts Institute of Technology are
among a handful borrowers that have issued such bonds in recent
years in a bid to capitalize on low rates.
"The public benefit would come from saving on interest
payments that will inevitably rise over time from their
unprecedented low levels - certainly sometime in the next 100
years, meanwhile financing highways, water projects,
universities and the like that will be needed to continue
serving the state's growing population and expanding economy,"
Bob Coalter, executive director at the Texas Public Finance
Authority, said he was not aware of any talk about the potential
for a 100-year Texas bond.
"The legislature has not instructed us to look into it," he
said. "If they did, we would."