Fed's Fisher Says 'Stimulus Is Kicking In'
In a highly anticipated press conference, President Obama said that though the U.S. economy is not "out of the woods" just yet, there are "glimmers of hope" for a recovery in the future.
Richard Fisher, President and CEO of the U.S. Federal Reserve Bank of Dallas shares Obama's view. He tells CNBC that though negative growth is expected this year, the risk of the U.S. economy getting worse is significantly lower than before, due to government measures.
"The stimulus program is kicking in, our efforts to restore some vibrancy to the credit markets are taking grip", Fisher told CNBC.
(For the full Richard Fisher interview, please click on the left)
Specifically, he sees the Federal Reserve's intervention in the mortgage securities market as having a key impact in stabilizing the economy.
He added the indicators that would help pull the economy out of its downturn include rail activity and shipping volumes, as he sees increased activity on that front.
Fisher believes the Fed has not only been accommodative but also helpful in easing the credit crunch. But obvious signs of a recovery are time-dependant.
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"We have to see how much the stimulus has its impact. Only time will tell."