Fed’s Fisher: Don’t expand or extend Treasury purchases

Count Dallas Fed president Fisher as a “no” vote for extending or expanding the Fed’s Treasury purchase program. He sees the faint beginnings of a recovery and expects the economic outlook for the next several quarters to be improving though he does not see the engines of a sustained recovery.

He says the Fed will have to tighten before it is politically expedient (a suggestion that rates will have to go up before unemployment peaks).

The dollar likes the hawkish talk. EUR/USD is down to 1.4232 and USD/JPY is up to 95.15 after reaching 95.20.