Fed’s Fisher Says U.S. Will Not ‘Monetize’ Deficit

From Bloomberg.com

Dallas Federal Reserve Bank President Richard Fisher said the U.S. has no intent to “monetize” its growing deficit as it seeks to stem the credit crisis.

“We have to be very clear we will not monetize deficits,” Fisher said today in a speech in Lubbock, Texas.

Rising U.S. government spending and forecasts for a record fiscal deficit have fueled investor concerns that inflation will rise and confidence in the dollar will fall. The U.S. budget gap is projected to reach $1.75 trillion in the year ending Sept. 30 from last year’s $455 billion shortfall, according to the Congressional Budget Office.