Dallas Fed President Explains the Weak Recovery in One Chart

More

If the U.S. was growing like Texas, we'd be golden.


TexasChartScreen shot 2012-06-28 at 6.10.19 PM.jpg

Who says the Fed is immune to provincial pride? In a freewheeling discussion with CNBC's Maria Bartiromo Thursday, Dallas Federal Reserve Bank President Richard Fisher couldn't help but point out how Texas has been crushing it in job growth compared to Uncle Sam. "As a nation, we're way behind," Fisher told attendees at the Aspen Ideas Festival in Colorado. Texas's "miracle" job growth is nothing new, but it does play a role in the current debate inside the Fed over whether the central bank needs to be more aggressive in combatting unemployment. To Fisher, a vocal opponent of the Fed's recent extension of Operation Twist, the Texas experience explains why monetary policy is not the answer to the nation's current ills.

Notes from the Aspen Ideas Festival -- See full coverage
"We have the same monetary policy as the rest of the United States," he said. "Why are we outperforming the rest of the country?" He ticked off a number of qualities that make Texas stand out. "We have made ourselves more business friendly. We have no income tax. We have a regulatory environment that is more business and job friendly," he said. "I'm convinced since we all have the same monetary policy, if we had differentiation for pro-growth policies, we'd have more economic growth." 

Fisher emphasized that he wasn't trying to tell members of Congress what to do ("I'm not an advocate") but it's pretty clear he personally believes the country should mirror policies carried out in Texas--a prospect that would no doubt horrify Democrats. It should make the left sleep better that Fisher is a clear outlier in the Fed, though he opposed QE2 and Operation Twist, his colleague's overruled him. Amusingly, it's a role Fisher seems to enjoy. "I don't have a PH.D in economics," he said. "I'm very proud of that fact."
Jump to comments
Presented by

John Hudson

John Hudson is a writer living in Washington, D.C. He is a former staff writer for Radio GIPA in Tbilisi, Georgia.
Get Today's Top Stories in Your Inbox (preview)

What Do You See When You Look in the Mirror?

In a series of candid video interviews, women talk about self-image, self-judgment, and what it means to love their bodies


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Adventures in Legal Weed

Colorado is now well into its first year as the first state to legalize recreational marijuana. How's it going? James Hamblin visits Aspen.

Video

What Makes a Story Great?

The storytellers behind House of CardsandThis American Life reflect on the creative process.

Video

Tracing Sriracha's Origin to Thailand

Ever wonder how the wildly popular hot sauce got its name? It all started in Si Racha.

Video

Where Confiscated Wildlife Ends Up

A government facility outside of Denver houses more than a million products of the illegal wildlife trade, from tigers and bears to bald eagles.

Video

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Writers

Up
Down

More in Business

Just In