Fed's Fisher: I have never seen such ebullient credit markets

FXStreet (Bali) - Dallas Fed Bank President Richard Fisher (FOMC voter) said the Fed "overshot the mark" on their intend to achieve modest interest rates, referring to junk bonds, which remain at record low levels.

"Interest rates on the lowest-quality credits - on 'junk' - are historically low, as are the spreads they are priced at above the current historically low nominal rates for investment-grade credits," Fisher said. "I have been involved with the credit markets since 1975. I have never seen such ebullient credit markets." Fisher added that the US may be facing an inflation rate "less than acceptable.