The Federal Reserve should not go from "wild turkey" monetary policy to "cold turkey" overnight, Dallas Fed President Richard Fisher told CNBC on Monday, saying that when to dial back is the key because stopping would be "too violent for the marketplace."
Fed Chairman Ben Bernanke's principle concern is the efficacy of the central bank's $85 billion a month of purchases of mortgage-backed securities and bonds, Fisher said in a "Squawk Box" interview.
He said the asset buying has helped boost the stock market, "but has it worked in the economy? ... We don't know."
Fisher, who had argued against quantitative easing in the first place, said he'd start tapering by scaling back the purchases of mortgage-backed securities.
"We're going to be at a point soon where ... [in] a couple of months, we could buying 100 percent of the gross issuance of mortgage-backed securities volume," he predicted. "We're going to be at a point where we're buying a significant portion—as these deficits come down slightly over the short term—of Treasury issuance."