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The goal of monetary is famously described as taking away the punchbowl once the party gets started. Dallas Fed president Richard Fisher explains his dissenting vote:

In the current financial-market turmoil, credit markets have been cutting back on lending to important segments of the nation's economy. As a result, "instead of taking the punchbowl away, the Fed is now faced with the task of replenishing the punch," Dallas Fed president Richard Fisher said Thursday.

Monetary policy acts with a lag, much like "good single malt whisky or perhaps truly great tequila," Fisher told an audience in Mexico City.

"It takes time before you feel its full effect," he explained.

"My dissenting vote last week was simply a difference of opinion about how far and how fast we might re-spike the monetary punchbowl," Fisher said.

Yes, but cutting 125 points in eight days is less like tequila and closer to doing lines of blow off the hooker's ass.

Posted by edelfenbein at February 8, 2008 1:26 PM