Dallas Federal Reserve President Richard Fisher brushed off concerns of looming deflationary pressures and told CNBC on Monday that he believed the U.S. economy is moving in the right direction.
“We had an exceptional performance number in June for manufacturing here in Texas,” he said on “The Kudlow Report,” adding that he wouldn’t read too much into manufacturing slowdown over the past two out of three months.
“I do worry about things slowing down. I do think we have positive growth underway. We are the shining star in the United States relative to the rest of the world.
“I see positive momentum, Larry. We have to be careful not to talk ourselves into a double-dip recession.”
Fisher said he did not support the Federal Reserve extending “Operation Twist,” a move the Fed announced last week to push down longer-term interest rates through the end of the year.
“We have over $2 trillion sitting on the sidelines in publically traded companies. We have additional money on the sidelines lying fallow in financial institutions,” he said. “The question is why would you add to it?”