The Fed does not tend to get into much of a give and take with the press or with individuals except for the odd Q&A session after speeches. Dallas Fed president Richard Fisher is breaking that mold a bit, taking calls on CSPAN, the public service cable channel, where he is taking viewer phone calls.
He said it is very import for fiscal policy to step forward to counter the downturn and that the Fed continues to explore new ways to aid the economy. He says the Fed’s job is to support the growth and employment while ensuring price stability. He stresses it is important not to ignore long-term inflation risks as it seeks to restore growth. He had a colorful view of protectionism, calling it the “crack cocaine” of economics
Markets are suffering from a bit of a Super Bowl hangover, trading quietly this morning. Risk aversion and GBP weakness remain the underlying trends the markets are contending with this morning. EUR/USD trades at 1.2766.