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Fed's Fisher says market volatility shouldn't stop ending QE3: CNBC
October 20, 2014 / 12:41 PM / 3 years ago

Fed's Fisher says market volatility shouldn't stop ending QE3: CNBC

(Reuters) - Recent market volatility should not stop the Federal Reserve from ending its bond-buying program at the end of this month, a top Fed official said on Monday.

Richard Fisher, president of the Federal Reserve Bank of Dallas, speaks on "U.S. Economy and Monetary Policy: Where to From Here?" during at luncheon in Hong Kong April 4, 2014. REUTERS/Tyrone Siu

“It hasn’t changed my outlook one iota,” Dallas Fed President Richard Fisher said in a CNBC interview. “The underlying economy is doing well.”

The volatility in financial markets was not unexpected, Fisher said, given the rise in stocks as the Fed bought trillions of dollars of bonds and kept rates near zero since December 2008.

The Fed is set to wind down its bond-buying stimulus at its meeting next week, but has also said it will keep rates near zero for a “considerable time” after bond-buying ends.

Fisher had previously said he expected the Fed to start to raise rates in the spring of 2015, but on Monday declined to repeat that view, saying that the decision to raise rates should be based on developments in economic data.

Reporting by Ann Saphir

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