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Richard Fisher, the Fed’s Mr. Lonely again

By Gary Jacobson

June 25, 2008 at 4:47pm

The Federal Reserve kept its benchmark interest rate at 2 percent today, with Dallas Fed president Richard Fisher providing the lone dissenting vote among the nine members of the Federal Open Market Committee. Fisher, fearing inflation, wanted to raise rates.

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In a release, the Committee said it expects inflation to ease this year.

“However,” the release said, “in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.”

Fisher has consistently been the anti-inflation hawk on the committee.

“Tight credit conditions, the ongoing housing contraction, and the rise in energy prices are likely to weigh on economic growth over the next few quarters,” the Fed said.

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