UPDATE 1-Fed’s Fisher warns about excess liquidity

* Fisher says liquidity sufficient, could be excessive

* Further liquidity stimulus could cause harm

* Fisher says will not support any further liquidity plan

(Updates with further quotes)

BRUSSELS, March 25 (Reuters) – The United States is flush
with liquidity and any further stimulus will not help and could
even harm the U.S. economy, Dallas Federal Reserve Bank
President Richard Fisher said on Friday.

Fisher, regarded by economists as one of the most hawkish
policymakers at the U.S. central bank, said the Federal
Reserve’s $600 billion bond-buying programme should end as
planned in June, with no extension or replacement scheme.

“It’s time to call a spade a spade. We did our job as a
central bank. We may have overdone our job. We have done enough.
We are at risk of doing too much. I don’t believe we will,”
Fisher said at a Bruegel Institute think tank event in Brussels.

“My admonition to our political authorities is, ‘don’t look
at us, look at yourselves. Come, be disciplined, be persistent,
press on’. We will no longer press on the monetary pedal in my
opinion,” he continued.

Fisher said the $600 billion of quantitative easing, dubbed
QE2, had effectively monetized U.S. Treasury debt and any plan
to extend it would in no way tackle the economy’s fundamental
problem.

No one was complaining about a lack of credit, he said.

“No amount of forthcoming accommodation… will help the
process which is afflicting the United States right now and may
well make it worse. The problem afflicting the United States
right now is that Americans are out of work,” he said.

“I will not support further monetary accommodation… There
are early signs of speculative activity that I do not consider
constructive.”
(Reporting by Philip Blenkinsop, editing by Rex Merrifield)

UPDATE 1-Fed’s Fisher warns about excess liquidity