We really like Dallas Fed President Richard Fisher. He's never afraid of separating himself from the pack in order to speak up for what he thinks is right. He's spoken out on our show several times against the Fed's money printing, even though Ben Bernanke still denies that's what the Fed's been doing.
He's spoken out in strong support of the low-tax, deregulatory climate of Texas under Republican Rick Perry, even though Fisher once ran for office as a Democrat.
And now Fisher's taking on his colleagues at the San Francisco Fed, even though in doing so he may be heading into a major election-year confrontation. The San Francisco Fed just came out with a report saying that the odds of a recession in 2012 have increased to better than 50%.
Fisher disagrees, saying that the risk of another recession is decreasing. He still sees a lot of problems with jobs and the economy, but Fisher doesn't think that the Fed printing more money's going to help. The San Francisco Fed, on the other hand, seems to be setting us up for another round of money printing. And we think that's exactly what President Obama wants.
Presidents running for re-election always pray that the Fed will print more money, because it gives an illusion that things are getting better. That illusion falls apart once the money printing turns into inflation. But it appears the San Francisco Fed cares more about the president's re-election than it does about the long-term effects of its actions.
Fisher clearly cares more about the danger of the Fed overreacting right now. We do, too, and that's just another reason we like Fisher so much, even if that endorsement may be seen by some of his Democrat friends as the kiss of death.