Dallas Fed's Fisher Says Economy Moving at 'Slow Slog', No Need for QE3; Money is Easy to Get

Dallas Federal Reserve Bank President Richard Fisher spoke with FOX Business Network’s (FBN) Peter Barnes about the United States economy and solutions for recovery.

Barnes asked a variety of questions to Fisher, here is some of the Q&A [moderately paraphrased]:

What is his outlook on the U.S. economy currently?

• Fisher said the economy is moving along at a "slow slog." Though the recent revision to U.S. GDP came in at 1.3 percent, Fisher said "the good news is it wasn’t minus 1.3%, but there’s not much range between those two. This is not robust growth; it’s not enough to replace jobs." He said we cannot put people back to work without more robust growth.

Is he concerned about a double-dip recession?

• Fisher's not concerned, but he says, "...we’re on an edge here and 1.3% is not overwhelmingly strong."

Will monetary policy be tapped out at this point?

• Fisher says the U.S. does not need more monetary stimulus, but "a more efficient fiscal mechanism." Fisher says the economy has been fueled, and we just need to step on the gas to "economic prosperity."

Are authorities doing a good job incentivizing businesses to put money to work?

• Fisher thinks they're doing a horrible job. He also said the debt service negotiations were a horrible setback. Money is abundant, Fisher contends, "it doesn’t cost very much to borrow...The best way to engage it is to provide more certainty."

Will fiscal authorities be able to solve the problems of the economy?

• Fisher thinks that both parties are responsible for the set backs. He said, "We know as central bankers, if they just rest on that one leg of that three-legged stool that is on us, on the fiscal guys and on the regulators, that always leads to a disaster." Fisher is calling for the support of the fiscal authorities, and for them to get their act together, before any real progress can be made.

What about Europe?

• Fisher thinks that we shouldn't tell Europe what to do, it's not our place. He comments that, "we hope they come up with solutions that will lead to economic growth without spurring inflation."

Fisher also said the U.S. doesn't need QE3.

FOX Business Network is a unit of News Corp. (Nasdaq: NWSA).

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