Fed’s Fisher: Dollar reflecting Europe’s debt crisis

KILLEEN, Texas (BestGrowthStock) – The strength of the U.S. dollar over the past month or so reflects investor concern over Europe’s growing debt crisis rather than optimism on U.S. economic prospects, a top Federal Reserve official said on Wednesday.

Dallas Fed President Richard Fisher, speaking to reporters after a townhall-style event with local business leaders in this central Texas town, said he wants the dollar to be more than “the best horse in the glue factory.”

“We want to conduct monetary policy, and we want to have fiscal policy conducted in this country, so that in absolute terms not relative to anybody else people have confidence in the currency and our economy, and invest more,” he said. “This is a question of relativity, and right now Europe is going through a rough patch just as we went through a rough patch.”

Fed officials often shy away from commenting directly on the dollar because the currency is the purview of the U.S. Treasury Department. The central bank controls monetary policy.

(Reporting by Ann Saphir, Editing by Chizu Nomiyama)

Fed’s Fisher: Dollar reflecting Europe’s debt crisis