Dallas to Frankfurt

Shades of the Bundesbank

Richard Fisher President Federal Reserve Bank Dallas. Source: Kai Nedden for Handelsblatt
Mind his words: Richard Fisher.
  • Why it matters

    Why it matters

    The world is watching as the Federal Reserve debates when to raise interest rates for the first time since the 2008 financial crisis. The Fed’s moves will have major ramifications for the European Central Bank.

  • Facts


    • Richard Fisher is head of the Federal Reserve Bank of Dallas, one of 12 districts that make up the U.S. Federal Reserve.
    • Mr. Fisher has been a voting member of the Fed’s rotating decision-making board this year. He will retire in the spring.
    • The Fed has held interest rates at a record low of 0.25 percent since December 2008.
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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.

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