Richard W. Fisher is the President of the Dallas Federal Reserve Bank. He is also among the dissenters from the Federal Reserve’s Open Market Committee policy of loose money.
He also grew up in Mexico City, where he returned this month to deliver a speech of some considerable consequence.
Fisher delivered this speech en español , so far as I can tell, and his praise for the progress of Mexican economic liberty is only the more striking for having been endorsed by so prominent a figure as the President of the Dallas Fed.
Mexico deserves abundant praise for reforming toward free markets and free trade and free labor. The careful auditor or reader of this speech probably detected a concealed text. The business environment in Mexico may well be better than that of America.
A sobering thought.
But let me say with all assurance that I do not for a moment begrudge Mexico gains in this area. Let liberty reign in Mexico! If America should falter on this course to free labor, free trade and free markets, let Mexico raise that noble banner in her stead.
Considerable weight has been laid upon Pres. Fisher’s comments concerning quantitative easing and interest rates, and of course his characterization of potential asset bubbles as “eye-popping.”
It should be recalled that Fisher is Texan. He subtly reminded the Banco de Mexico that Texas now pumps more oil than Mexico. All the more reason to cheer the Mexican turn toward economic freedom in opening up energy to foreign direct investment.
The Federal Reserve is dialing back its QE. It has also turned over $300 billion in profits to the Treasury. That’s deficit reduction, though of a curious sort.
Let us hope two things at least: that Fisher’s pessimism concerning loose money is misplaced, and that Mexico continues on the course he so warmly and justly compliments her on.