Fisher said he disagreed with the view the Fed had been "pandering" to markets in cutting rates aggressively.
"We took the actions that were taken as a group in response to what we viewed as the prospective weakening of the US economy and were driven by economic considerations. In terms of the actions we take on the Fed Funds rate there are other tools we can use, for example the term auction facility addresses liquidity needs, and we will continue to develop our tool box," he said.
"My sense, from my personal perspective, is that 3.5% was a sufficient level. We have moved very quickly to that level. Going further to 3% might create a bit of a counter-reaction. In fact, it did create a bit of a counter reaction - that is long term rates went up including on jumbo mortgages and, of course, the dollar has weakened," he said [when asked about his January dissent].
...
"I trust in the wisdom of my colleagues."
As reported by Market News International