Fed's Fisher expects close to zero growth this year
Market Watch
By Rex Nutting
August 12, 2008

WASHINGTON (MarketWatch) -- The U.S. economy faces a prolonged period of anemic growth, but that's no reason to get complacent on inflation, said Dallas Fed President Richard Fisher in an interview with the Dallas Morning News published Tuesday. "I expect that in the second half of this year we will broach zero growth," he said. Fisher, a voting member of the Federal Open Market Committee who's been on the losing side on the past five votes on interest rates, said the credit crunch is worse than the S&L crisis of the late 1980s. "We go through these periods of correction. It's not unhealthy. It's the way capitalism works." Fisher said everyone on the FOMC would be concerned if inflationary expectations became unanchored.

Original Text