One of Richard Fisher‘s defining features during his seven years at the Federal Reserve is his status as one of the very few American central bankers who has actually worked in financial markets.
This background gave the president of the Federal Reserve Bank of Dallas a unique window onto what was happening to the financial system before the 2008 crisis. And according to transcripts from the 2007 meetings of the Federal Open Market Committee released Friday, it appears to have contributed to his becoming one of the first FOMC members to openly worry about the brewing problems on Wall Street.
In 2007 Richard Fischer was just a “bystander”, i.e. he didn´t vote, just “talked”.
But the following year, 2008, as voting member he dissented (towards “tightening”) in all FOMC meetings between January and August.
Just goes to show that having financial markets savvy doesn´t make you a “better” central banker!