SAN ANTONIO (Reuters) - Despite the efforts of the U.S. Federal Reserve to use easy monetary policy to boost job creation, the country’s economy remains in “neutral” more than three years after the end of the recession, a top Fed official said on Wednesday.
“It is not possible to create jobs through monetary policy alone,” Dallas Fed President Richard Fisher said at a World Affairs Council of San Antonio event. “The U.S. remains the economic engine of the world...it’s not China, it’s not Europe, it’s the U.S., and the U.S. remains in neutral.”
Fisher, repeating a well-worn analysis of the limits of the Fed’s super-easy monetary policies, said the U.S. central bank does not have the power to pull the economy from its standstill as long as U.S. lawmakers do not do their part.
“We have provided fuel for an economic recovery because Congress and the Executive have not provided the incentives for growth,” Fisher said.
Writing by Ann Saphir in San Francisco; Editing by Lisa Shumaker