UPDATE 1-Fisher: Fed has "done enough" asset-buying–CNBC

(Adds Fisher comments.)

CHICAGO, July 7 (BestGrowthStock) – The U.S. economic recovery is
slowing, but the Federal Reserve does not need to do more to
help it along, Dallas Fed President Richard Fisher said on
Wednesday.

The Fed, the U.S. central bank, has kept short-term
interest rates at near zero since December 2008, and has bought
more than $1 trillion in mortgage-backed securities to blunt
the worst downturn since the Great Depression.

To get banks back to lending and companies back to spending
requires more regulatory certainty, not cheaper money, Fisher
said in an interview on business news channel CNBC.

“People are uncertain — they are hoarding cash, they are
holding back,” Fisher said, citing the complexity of the
healthcare bill as a factor in making it difficult for
corporations to project future costs.

“This is nothing to do with monetary policy — we have been
as accommodative as possible,” he said.

While the recovery has slowed, it is unlikely the U.S. will
fall back into recession, he said.

The Fed does not need to buy more assets, and should be
careful about “going too far,” he said, although not because of
concerns over inflation, which he said is not an issue.

Buying more assets “could do damage by damaging our
credibility,” he said.

“There is plenty of liquidity in the system,” he said. “It
will be utilized only if there’s confidence in the future.”

(Reporting by Ann Saphir, Editing by Theodore d’Afflisio)

UPDATE 1-Fisher: Fed has "done enough" asset-buying–CNBC