Richard Fisher, former president of Dallas Federal Reserve, criticised President Biden’s energy plan, calling it an attempt to “beg other” for more oil than he could produce in the U.S.
Steve Liesman, a CNBC reporter, asked Fisher about his views on the diplomatic effort by the United States to obtain gas from Venezuela and Saudi Arabia. Fisher spoke about his experiences with the Carter administration in which he was an assistant to the Secretary for Treasury in the late 70s.
Fisher claimed that he was accompanied by Secretary of State Cyrus Vance, Treasury Secretary Michael Blumenthal and “created a committee with the Saudis & the Kuwaitis.” He claimed that they met with Secretary of State Cyrus Vance and Treasury Secretary Michael Blumenthal, who “created a commission with the Saudis and the Kuwaitis” and said they “begged” them to produce more oil. This was “exactly what’s happening today.” Fisher also noted that they met with the Venezuelan president.
“I’m a Texan. Fisher stated that Fisher doesn’t get why it isn’t more important to encourage our own production sector than to rely on others for more.
February saw inflation rise to 7.9 percent, with gas prices increasing 6.6 percent. This is a new 40-year high. Nearly a third of all price increases were caused by gas prices.
Rebecca Quick, the former Dallas Fed president, also spoke out about inflation and wages. She noted that the Fed was in a complicated situation due to rising inflation, as China has closed down Shenzhen, its tech hub. This could have a negative impact on the global supply chain, as many have warned.
Quick stated that Fed rate increases “aren’t all that helpful when dealing with supply chain troubles,” and that the European Union as a whole will feel the economic pain of the war in Ukraine.
She said, “They’re going be asking the central banks there to not raise rates quickly because it’s not going to cost them more pain.”
Quick asked Fisher whether the U.S. Federal Reserve would follow suit or if they would raise rates “very rapidly” knowing that this would lead to a “much stronger dollar” than the European Central Bank.
Fisher stated that it was “that complicated” and that the Fed cannot do anything to address “supply constraints.”