Fed's Fisher raises doubts about QE3 (by Greg Robb)

WASHINGTON (MarketWatch) -- The fact that banks are already sitting on over $1.5 trillion in excess reserves makes it unlikely that a third round of asset purchases, or quantitative easing, is needed, said Richard Fisher, the president of the Dallas Fed bank on Wednesday. "I firmly believe the Federal Reserve has already pressed the limits of monetary policy," Fisher said in a speech to the Rotary Club of Dallas. "U.S, banks and businesses are awash in liquidity. Adding more is not the answer to our problems," he said. Fisher said he expected the economy to recover its footing and accelerate to a 3%-4% rate over the next six months. He said a budget deal between Congress and the White House would "remove the Damocles Sword of uncertainty" hovering over the economy.