‘We Are Not Bailing Out Europe’ – Fisher

In an interview to appear tonight on FOX Business Network’s Power & Money (9 PM/ET), Federal Reserve Bank of Dallas President Richard Fisher speaks with host David Asman about what prompted the Federal Reserve to lower the cost of emergency dollar funding for financial companies. President Fisher said the Federal Reserve’s actions are not “bailing out European socialism, or bailing out Europe,” they are simply “trying to meet a shortage of dollars.” He went on to say “there is no dramatic event” prompting the action, but rather it is an effort to “make sure as the recovery is gaining momentum.” Excerpts from the interview can be found below, courtesy of Fox Business Network.

On Congressman Ron Paul’s (R-TX) criticism of the plan:
“I respect Congressman Paul but we are not bailing out European socialism, or bailing out Europe. We are trying to meet a shortage of dollars. They have to pull their socks up just like our congress needs to do and get their act together and solve the underpinning uncertainty.”

On what prompted six banks led by the Federal Reserve to lower the cost of emergency dollar funding for financial companies:
“All we have done is renew and push forward a date for swap agreements. It is a reassurance. We care about monetary policy that affects the United States. Our interest is making sure people who want to buy American products in dollars have access to those dollars so we can see the economy continue to improve and not constrain economic growth because they do not have access to dollars. We need to anticipate. We want to make sure as the recovery is gaining momentum, whatever we do encourages that forward momentum doesn’t retard that momentum. There is no dramatic event.”

On whether rumors that we were heading to a 2008 style meltdown were what prompted the change are true:
“Not true.”

On the currency volatility:
“I wouldn’t pay much attention to the day to day movement. The dollar is the currency of preference right now. I don’t believe this signals a weaker dollar.”

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