Dallas Fed President Fisher on Feral Hog Reaction to FOMC

A top U.S. central banker on Monday warned the “feral hogs” of financial markets against overreacting to the Federal Reserve’s plans to slow its bond buying, as yields on U.S. Treasuries climbed to their highest level since August 2011.

Richard Fisher, president of the Dallas Federal Reserve and a member of the rate-setting Federal Open Market Committee, said in an interview with the Financial Times that while the big players in financial markets acted like “feral hogs” by scenting any weakness in policy makers’ intent, he did not think anyone could break the U.S. central bank.

Commenting on the market turbulence triggered by Fed chair Ben Bernanke’s signal that the bank could begin tapering its $85-billion monthly bond purchases before the end of this year, Mr Fisher told the FT: “My personal feeling is that you don’t walk up to a lion and flinch.”

He likened the market reaction to the 1992 attack led by investor George Soros on the Bank of England, which led to the UK crashing out of the European exchange rate mechanism.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza