Fed’s Fisher Opposes Extension of QE2

U.S. Federal Reserve Bank of Dallas President Richard Fisher said he opposes any extension of the Fed’s asset purchase program after June, saying inflationary pressures are building “world-wide.” “No further accommodation is needed after June. We can no longer press on the monetary pedal,” Fisher said in a speech at Goethe University in Frankfurt. Fisher has been skeptical of the program, dubbed QE2, saying two weeks ago, that it should prove “demonstrably counterproductive,” and it would be better to discontinue it. Last week, the Fed voted to maintain its key lending target near zero and maintain its planned $600 billion in Treasury purchases through June. As the Fed’s rate-setting board voted to continue the program, he warned of speculative excesses that may be contributing to the rise in oil prices. “We are seeing the signs of all the intoxication” that arises from cheap and available capital, Fisher said.