WHEN: TODAY, TUESDAY, JUNE 7TH
WHERE: CNBC’S “SQUAWK BOX”
Following are excerpts from the unofficial transcript of a CNBC interview with Richard Fisher, Federal Reserve Bank of Dallas President and CEO on CNBC’s “Squawk Box” today. All references must be sourced to CNBC.
FISHER ON THE FED:
"THE FED HAS PUT A LOT OF LIQUIDITY IN THE SYSTEM, YOU CAN ARGUE THAT WE'VE PUT TOO MUVCH, I'VE EVEN ARGUED THAT INTERNALLY, BUT YOU CAN NOT ARGUE THAT WE HAVE NOT DONE ENOUGH."
FISHER ON US BUSINESSES:
"AMERICAN BUSINESSES ARE AS LEAN AND EFFICIENT AS IMAGINABLE, I DON'T THINK ANYONE CAN BEAT US RIGHT NOW, YOU'RE NOT GOING TO HIRE- AND HIRING SOMEONE IS A LONGTERM COMMITMENT, THIS IDEA THAT CAPITALISTS JUST DISPENSE WITH PEOPLE WILLY-NILLY, IT DOESN'T WORK THAT WAY, PARTICULARLY IF YOU'VE GONE THROUGH THE PAIN OF LAYING PEOPLE OFF AS YOU'VE DONE FOR THE LAST THREE YEARS HERE. "
FISHER ON TEXAS:
"WE HAVE THE SAME INTEREST RATE STRUCTURE IN TEXAS AS THE REST OF THE US, LOW INTEREST RATES, SAME AVAILABILITY OF CAPITAL, BUT MONEY AND PEOPLE AND PRODUCTION IS MOVING TO OUR STATE, SO ITS GOING TO GO WHERE IT HAS THE BEST FISCAL POLICY AS LONG AS MONETARY POLICY DOESN'T GET IN THE WAY AND I THINK WE'RE DOING A GOOD JOB."
FISHER ON CREATING RULES:
"WE'VE GOT TO CREATE RULES AND REGULATIONS HERE THAT ATTRACT CAPITAL AS WELL AS DEAL WITH OUR UNFUNDED LIABILITIES OUR DEFICIT PROBLEMS AND SO ON, JUST AS TEXAS HAS MANAGED TO DO SO RELATIVE TO OTHER STATES IN THE UNITED STATES."
FISHER ON ACCELERATING THE ECONOMY:
"I'D LIKE TO SAY THE GAS TANK IS FULL, WE'VE MADE THAT POSSIBLE, THE FEDERAL RESERVE, THE OPEN MARKET COMMITTEE, HAS PUT LIQUIDITY OUT THERE IN THE SYSTEM THE QUESTIONS IS, WHO GETS IN THERE TO STEP ON THE PEDAL AND ACCELERATE THE CAR, TO CREATE JOBS FOR AMERICANS AND THAT I THINK IS NOT IN OUR HANDS ANYMORE."
FISHER ON TEXAS JOBS:
"SINCE THE RECOVERY BEGAN, 38 PERCENT OF ALL JOBS CREATED IN AMERICA HAVE BEEN CREATED IN TEXAS, AND TEXAS IS BACK UP, IN FACT MY 11TH FEDERAL RESERVE DISTRICT OF TEXAS, PARTS OF LOUISIANA, PARTS OF NEW MEXICO; OBVIOUSLY 96 PERCENT OF THAT PRODUCTION AND THE NUMBER OF PEOPLE ARE IN TEXAS OF MY DISTRICT- HAS MORE EMPLOYMENT NOW THAN IT HAD WHEN THE CRISIS BEGAN."
FISHER ON US BUSINESSES:
"WE'RE HYPER-PRODUCTIVE- OUR BUSINESSES HAVE CUT THEIR COSTS TO THE BONE, THEY'VE DRIVEN UP PRODUCTIVITY, THEY ARE READY TO HIRE IF THEY CAN SEE THE WHITES OF THE EYES OF A COUPLE THINGS, EXPANSION OF DEMAND, BY THE WAY IT HAS TO BE GLOBAL WE LIVE IN A GLOBALIZED WORLD, SECONDLY A LIFTING OF THE FOG, DEALING W/ RULES REGULATION TAXATION ALL THE THINGS THAT FISCAL AUTHORITIES DEAL WITH STATE AND LOCAL AS WELL AS FEDERAL, BUT THEY DO HAVE THE WHEREWITHAL WHICH THE FED HAS PROVIDED WHICH IS LIQUIDITY."
FISHER ON HIGH PRICES:
“HIGH ENERGY PRICES, HIGH FOOD PRICES, UNCERTAINTY AMONGST CONSUMERS AS TO WHERE WE'RE GOING. LOOK, THESE ARE HUMAN BEINGS. THEY'RE GOING TO REACT TO RETARDANTS IN TERMS OF WHAT HAPPENS TO THEIR ABILITY TO SPEND. AND THEY ARE COMING OUT OF A SHOCK PERIOD. SO TO ME, I'M NOT SURPRISED. I'M -- I WAS SURPRISED. I OVERESTIMATED THE KIND OF GROWTH I THOUGHT WE WOULD SEE IN THIS QUARTER. I THINK THOSE ARE THE RETARDING FACTORS. THEY'RE BEING SOMEWHAT ALLEVIATED."
FISHER ON PRICING:
“I THINK BUSINESSES ARE GOING TO HAVE A TOUGH TIME PRICING WHAT GOES OUT THE DOOR TO MAKE UP FOR WHAT COMES IN THE DOOR. WE KNOW THAT PRESSURE IS THERE. WE SAW A LOT OF CHEST BEATING AND BRAVADO FROM CORPORATIONS SAYING IN JUNE, WE'RE GOING TO BE RAISING PRICES, SIGNIFICANT NUMBERS BIG COMPANIES LIKE P & G AND OTHERS HAVE ANNOUNCED THEY'RE GOING TO DO IT. WE'LL HAVE TO SEE IF THE CONSUMER WILL ALLOW THEM TO GET AWAY WITH IT."
FISHER ON QE ENDING:
“I AM PERSONALLY JUST PLEASED THAT WE'RE DONE WITH THIS LARGE SCALE ASSET PURCHASE PROGRAM. IT ENDS IN JUNE. I THINK THAT'S AN IMPORTANT FIRST STEP. I AM PERSONALLY NOT ABLE TO ENVISION A SCENARIO WHERE WE WOULD DO MORE BECAUSE THERE'S LOTS OF LIQUIDITY IN THE SYSTEM. WE'LL JUST HAVE TO GO FROM THERE. I THINK THERE'S AN ARTIFICIAL DISTINCTION BETWEEN HAWKS AND DOVES HERE AND THAT ALL OF US AGREED THAT THE PROGRAM ENDS IN JUNE."
FISHER ON AMERICA BEING LEAN AND MEAN:
“WE ARE LEAN AND MEAN. OUR BALANCE SHEETS ARE IN GREAT SHAPE IN AMERICA. THERE IS A LOT OF LIQUIDITY OUT THERE. I AM EAGER TO SEE THE TRIGGER, AND I DON'T KNOW WHAT IT IS FOR THAT MONEY TO BE SPENT PUTTING AMERICANS BACK TO WORK, COMMITTING TO CAPITAL EXPANSION. IT'S JOBS AND UNEMPLOYMENT. AMERICAN BUSINESSES ARE IN VERY, VERY, VERY GOOD SHAPE.”
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