Unless you’re a real economics geek, it can be a challenge to listen to Ben Benanke’s testimonies, sit through a Fed governor’s speech, or thumb through FOMC minutes.
But lately, we’ve increasingly seen the more frank and informal sides of the Federal Reserve officials. Just look at the comments from Frederic Mishkin, Randy Krozner, and Richard Fisher from the recently released 2006 FOMC transcripts.
Yesterday, we noted the Dallas Fed’s Fisher said Wall Street’s obsession with quantitative easing was a borderline fetish.
Art Cashin, UBS Financial Services’ director of floor operations is also becoming a fan of Fisher. Here’s an excerpt from today’s Cashin’s Comments:
Not Quite Patrick Henry But A Strong Speech Nonetheless – We are steadily becoming bigger and bigger fans of Dallas Fed President Richard Fisher and his blunt, straight from the shoulder speeches. Since he has ceased to be a “voting” member, he may be using the podium as a bully pulpit. Let’s take a look at what he said yesterday in Dallas:
I have been asked to speak about the economy. I am going to take a different approach than is typical for a Federal Reserve speech. I’ll eschew making the prototypical forecast, except to note that from my perch at the Federal Reserve Bank of Dallas, I presently see that: a.) On balance, the data indicate improving growth and prospects for job creation in 2012. However, the outlook is hardly “robust” and remains constrained by the fiscal and regulatory misfeasance of Congress and the executive branch and is subject to a now well-known, and likely well-discounted, list of possible exogenous shocks—the so-called “tail risks”—posed by possible developments of different sorts in the Middle East, Europe, China and elsewhere. And b.) While price stability is being challenged by the recent run-up in gasoline prices—which has yet to be reflected in the personal consumption expenditure and consumer price indexes but may well make for worrisome headlines when February data are released—the underlying trend has been converging toward the 2 per cent long-term goal formally adopted by the Federal Open Market Committee (FOMC) at its last meeting.
Wow! “…..fiscal and regulatory misfeasance of Congress and the executive branch” (spelled White House). As you recall from Civics class in the fourth grade, misfeasance is the performance of a lawful or legal action in an illegal or improper manner. While not quite as ugly as its cousin – “malfeasance” – which is misconduct or wrong doing by a public official; misfeasance is a pretty strong image.