Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Fed's Fisher: Inflation is not threat at moment

Fed's Fisher: Inflation is not threat at moment (by Greg Robb)

WASHINGTON (MarketWatch) - Inflation is not a threat to the economy at the moment, said Richard Fisher, the president of the Dallas Federal Reserve Bank on late Thursday. "Inflation has been coming down, not going up. I don't see that as a problem presently," Fisher said in an interview with Fox Business Network. The data show inflation is coming down to a 2% rate, Fisher said. A drop in natural gas prices is helping offset higher prices at the pump, he said. Fisher said the economy was in better shape and gaining momentum. He repeated his bank's opposition to another round of bond buying, or quantitative easing, by the central bank. "We will not support further quantitative easing under these circumstances because there is a lot of money lying on the sidelines, lying fallow," specifically mentioning that banks have $1.6 trillion in excess reserves and corporations have over $2 trillion in cash sitting on the sidelines. "Why would you put more out there when what we've already put out there is not being used?" he asked. Fisher repeated that the federal government should break up the biggest banks to end the implicit government guarantee of these institutions known as "too-big-to fail." "I just think there is too much concentration in the industry," Fisher said. He said the big banks were "gumming up the engine" of the economy.