(RTTNews) -  Dallas Federal Reserve President Richard Fisher said Monday that the previously reported 3.5 percent third quarter increase in gross domestic product would most likely be revised lower.

Speaking at a conference in Tyler, Texas, Fisher said he was willing to venture that the increase would not be "as robust as originally reported."

He did say, however, that the growth rate would still be positive - though it would be closer to a rate of 2.5 percent - and that growth would also be positive for the fourth quarter.

Even though he said economic growth would be positive, Fisher cautioned that the high unemployment rates would cause recovery from last year's financial crisis to be slow.

Fisher also said during his speech that he was surprised that interest rates have remained at near-zero levels despite an increase in debt issuance.
The Dallas chief's remarks came soon after Fed Chairman Ben Bernanke addressed the Economic Club of New York on the state of the economy and said that although the central bank is monitoring the declining U.S. dollar, it would continue to focus on its objective of maximum employment and price stability and keep interest rates near zero.

"Our commitment to our dual objectives, together with the underlying strengths of the U.S. economy, will help ensure that the dollar is strong and a source of global financial stability," he said.

When asked about the dollar at a question and answer session following his speech, Fisher said that lower interest rates have not increased the risk of the dollar declining in value. Rather, he said, the weakening of the dollar was due to other major currencies entering the world's economic system.

"You'd expect with more participants that there might be some kind of rebalancing," but such evolution would be orderly and gradual, he said.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com