Thursday, November 29, 2007

Inflation has Dallas Federal Reserve president 'very concerned'

Perhaps there is someone in the federal reserve system who can put a stop to the collapsing credibility of the US central bank. Dallas President Richard Fisher finally speaks out. Yes, inflation is a concern, the US economy is in reasonable shape. The only reason for an interest rate cut comes from those who want to bail out Wall street.

Bloomberg News - Federal Reserve Bank of Dallas President Richard Fisher said he's "very concerned" about the chance of faster inflation, and policy makers are weighing that risk against having "healthy, working" financial markets.

"The decision will have to be based on these two counter- forces" at the next interest-rate meeting on Dec. 11, Fisher said today in Amarillo, Texas. "There are people at the table," including Fisher, who have inflation concerns, he said.

Fisher's remarks contrast with comments earlier today by Fed Vice Chairman Donald Kohn, who buttressed forecasts for officials to cut interest rates by highlighting concern about "deterioration" in financial markets. Traders anticipate the central bank will act for the third straight meeting to offset risks the economy will fall into recession.