Dallas Fed President Richard Fisher, believes that the Fed has done its job of providing liquidity, it is now up to Congress to get the economy incented toward growth: “You can’t have a recovery unless we have employment go up [and] unemployment go down,” Fisher told Kudlow. “We won’t have that unless people decide to expand and right now there is almost no incentive to expand.”
He believes that holding interest rates near zero is actually counter-productive as businesses will wait to borrow since they now know the rates will be locked in at very low levels for two years. Meanwhile savers and investors take the brunt of the pain with low and negative returns on their capital.
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