Economy’s Biggest Problem: Growing Distrust

Richard Fisher, the president of the Federal Reserve Bank of Dallas, says that businesses have ample access to credit from banks, but that a growing distrust of the nation’s political institutions is keeping them on the sidelines.

Money-RollsThe Federal Reserve should not take steps to combat economic problems created by Washington’s penchant for theatrics and “fiscal misfeasance,” a Federal Reserve Governor said.

Richard Fisher, the president of the Federal Reserve Bank of Dallas, said that businesses have ample access to credit from banks, but that a growing distrust of the nation’s political institutions is keeping them on the sidelines.

“They simply cannot budget or manage for the uncertainty of fiscal and regulatory policy,” he said in a speech. “There is palpable angst surrounding the cost of doing business. According to my business contacts, the opera buffa of the debt-ceiling negotiations compounded this uncertainty, leaving business decisionmakers frozen in their tracks.”

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Source: Peter Schroeder | The Hill