Fed’s Fisher: ‘Economy Has Pulled Back from the Edge of the Abyss’

In a speech before the Texas Bankers Association in San Antonio, Dallas Federal Reserve Bank President Richard Fisher said Friday, that Fed’s aggressive policy actions have “succeeded in pulling the U.S. economy from the edge of the abyss,” and could be setting up for recovery.

From Reuters: “The initiatives taken by my fellow ‘banksters’ at the Federal Reserve prevented us from falling into the chasm of an economic depression,” Fisher said.

“I envision a slow recovery. Not a V-shaped snapback—nor even a U-shaped one—but a very slow slog as we find a more sensible and sustainable mix between consumption and savings and investment,” he added.

Fisher predicted positive growth will not start until the beginning of 2010, adding that he would by surprised if the economy sees green GDP numbers before then.

Fed Fisher, who is not a voting member of the FOMC, also said the U.S. central bank had beaten back deflationary pressures that loomed until recently.