The euro zone and the United States might be facing a world of different problems at the moment. Yet listening to Dallas Federal Reserve chief Richard Fisher speak, you can’t help but hear echoes of Germany’s central bank president, Jens Weidmann.
The two men are outliers on their respective central banking boards – hawks as they are known in the United States – because they tend toward a more narrow interpretation of a central bank’s mandate and would typically like to see higher interest rates to guard against inflation.
Mr. Fisher joked that the Dallas Fed, one of 12 central banking districts in the United States, is “known as the Bundesbank of the Federal Reserve system.”
“We know, just as the Bundesbank knows, just as the European Central Bank knows … that the monetary authority has limited power,” Mr. Fisher said.