Fed's Fisher says U.S. is "drowning" in unemployment
RICHARDSON, Texas (Reuters) - The United States is "drowning in unemployment" and its economy is running at stall speed but the roots of those problems cannot be solved by easier monetary policy, one of the Federal Reserve's most hawkish policymakers said on Friday.
"We've had a recovery that is quite disappointing," Dallas Fed President Richard Fisher said at the University of Texas, adding: "We're cruising along right at stall speed."
But without more certainty on tax policy and regulation, he said, "all the monetary accommodation in the world" will not get businesses hiring again.
In particular, businesses are unable to plan for the future as long as a raft of spending cuts and tax increases dubbed the 'fiscal cliff' looms at the end of this year, he said.
"A short-term fix to the fiscal cliff will do nothing but push out the envelope of indecision and we will continue to be plagued by high unemployment," he said.
(Reporting by Chris Baltimore; Writing by Ann Saphir; Editing by James Dalgleish)
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