June 10, 2008 / 12:40 PM / 11 years ago

Fed's Fisher-Fed won't rescue Social Security

NEW YORK, June 10 (Reuters) - Dallas Federal Reserve President Richard Fisher on Tuesday said the U.S. central bank will not rescue the country from its obligations to underfunded government retiree and health care benefit programs.

“It’s a standard political reflex... if you can’t solve a fiscal process, you turn to the monetary authorities to turn on that faucet and print their way out of it,” Fisher said in a speech to the Council on Foreign Relations. “And I’m here to tell you that neither I nor (Fed Chairman) Ben Bernanke nor anyone who sits on the Federal Open Market Committee will countenance that behavior,” he added.

The Social Security and Medicare programs are projected to run enormous deficits as the retiring Baby Boom generation swells the ranks of pensioners. (Reporting by Lucia Mutikani, writing by Mark Felsenthal; Editing by Theodore d’Afflisio)

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