"Trust me", says the Fed

I wish to trust Richard Fisher, the Dallas Fed President, because he is a well-known inflation hawk. But I am not convinced the Fed knows when is the exact right time to rein in the massive liquidity (we know monetary policy works with more than 12 months lag), and whether they could be able to do it given the almost certain prospect of double digit unemployment rate, and the political pressure they are about to face.

Watch this interview of Richard Fisher on inflation and the Fed.