Saturday, April 15, 2006

Fischer vows to "spend every ounce" in defense of the "faith-based" US Dollar

DALLAS, April 11 (Reuters) - The Federal Reserve will do what it takes to maintain its credibility, which is central to preserving the integrity of the U.S. dollar, Dallas Federal Reserve Bank President Richard Fisher said on Tuesday.

Alluding to the Fed's dual role of ensuring inflation doesn't "raise its ugly head" while still promoting the fastest possible noninflationary growth, Fisher said, "We seek to get it right. And the answer to your question is we will do what gets it right."

The Fed has raised interest rates in 15 consecutive quarter percentage point steps to 4.75 percent and warned that further policy firming may be needed -- language that financial markets bet means that rates will reach 5 percent by mid-year.

Answering audience questions after a speech to the Dallas Friday Group, Fisher said the U.S. dollar is a "faith-based currency" dependent on the credibility of a central bank.

"In addition to a faith-based currency, we are the currency of the world and we must maintain its integrity. As far as my involvement is concerned, I will spend every ounce of energy doing that. I have no doubt that my colleagues will do exactly the same," Fisher said.

Looking over Fisher's Resume it appears that the Federal Reserve Board Member from Brown Brothers Harriman is part of the problem at the Central Bank. Jimmy Carter Economic Advisor, Kissenger Partner, NAFTA negotiator, loose-liped clown. I thought these guys were supposed to be subtle when they spoke? I can't wait until these guys are doing the perp walk on CNN trying to explain away their Enron-style market manipulations and "faith-based currency" to a pissed-off American public. - Etienne