Investing.com – The president of the Federal Reserve (Fed) Bank of Philadelphia Patrick Harker insisted on Thursday that it was time for other policy areas to do their part to foster growth as the U.S. central bank had already done its part.
In a speech focused on international trade delivered in Dublin, Ireland, Harker stated that the American economy had reached a point where the Fed had done all that it could possibly do.
“As everyone in this room knows, the reach and arsenal of monetary policymakers is limited,” he said.
Harker explained that the Fed could do little more than move interest rates since the extraordinary mechanisms were only designed for use during times of economic upheaval.
“At this juncture in the post-crisis recovery, at least in the U.S., it’s time for fiscal and other policies to take the reins,” Harker said.
“We cannot foster growth without long-term approaches, legislation, and investments that are far outside the scope of the Fed’s reach,” he added.