HiFX: Foreign Exchange Specialists

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April 9, 2008

In his speech on the current state of the U.S. economy Dallas Fed President Richard Fisher stated that inflation is still a concern.  He also noted that markets should not continue to expect rate moves as the Fed has tools other than the Fed Funds Rate.  Fisher cautioned that if the Fed pumps too much liquidity it risks inflation also “anxiety in markets will blunt the impact of additional monetary accommodations.”  Despite Fisher’s hawkish stance on monetary policy market reaction was largely muted as he did leave the door open to changing his stance.