Financial markets will eventually test European Central Bank President Mario Draghi's commitment to do "whatever it takes" to protect the euro, Richard Fisher, president of the Federal Reserve Bank of Dallas said on Thursday.
"There used to be a saying, 'Don't fight the Fed'. Well now it's 'Don't fight Draghi' and the question is will markets test that," Fisher, a member of the Federal Open Market Committee, the Fed's main policy making body, said at a conference in Rome.
"I've always assumed that markets will test the Fed or the ECB and you can't just assume it will go on forever," he said.
Referring to the United States, Fisher also said that ultra-accomodative monetary policy had fueled a boom on financial markets that risked creating bubbles in some areas. "We're beginning to see extreme risk taking in the junk bond markets," he said.