Fed's Fisher urges U.S. government to act on employment

Published November 29, 2012

| Reuters

Dallas Fed President Richard Fisher, a top U.S. Federal Reserve official, on Thursday urged the U.S. government to give businesses more of incentives to invest the use liquidity the central bank has provided to create jobs.

The Federal Reserve said in its Beige Book report on Wednesday that the U.S. economy had trucked along at a "measured" pace in recent weeks and hiring remained modest.

Fisher called for more action from the government to boost employment, saying there were limits to what monetary policy could do.

"We at the central bank have been carrying the load and this is a very dangerous predicament," Fisher, a self-described anti-inflation hawk, said during a lecture in Frankfurt.

"Monetary policy provides simply the fuel, but the incentive has to come from our fiscal authorities," he added.

"The gas tank is full (with liquidity) and now we have to get someone to ... step on the accelerator to propel the job creating machine in the United States. There is a limit to what a monetary authority can do. All we can do is provide liquidity."

(Reporting by Eva Kuehnen and Paul Carrel)

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