DALLAS (CNNMoney) -- The nation's central bank is nearing a "tipping point" on its policy-making decisions, Dallas Federal Reserve President Richard Fisher said Friday.
In the delicate balancing act between its two main responsibilities -- promoting job growth and staving off inflation -- the Fed has been squarely focused on stimulating employment. But Fisher thinks the time has come to wrap up those efforts and shift policy in the other direction.
"Having done our job, I see many risks to the Federal Reserve overstaying its position," he said, speaking at a financial journalism conference in Dallas. "There is the risk that we might breach our duty to hold inflation at bay."
Fisher has argued for months now that the Federal Reserve needs to start backing away from its efforts to stimulate job growth by pushing $600 billion into the economy. The controversial policy, known as the second round of quantitative easing or QE2, is scheduled to end in June -- and Fisher wants it to stay that way.
As gas and food prices continue rising, he thinks the Fed should even consider cutting the program before its end date.
"Indeed, it may well be that we should consider curtailing what remains of QE2," he said.
Considered one of the Fed's most outspoken inflation hawks, Fisher is concerned that rising prices could threaten economic growth sooner than later.
"American businesses, like businesses in other countries, are doing their utmost to offset with higher prices the surging costs of inputs," Fisher said.
Fisher nodded to Bernanke's argument on Friday, but stressed that he believes further monetary stimulus could turn consumer inflation into a longer-term problem.
"Adding still more liquidity, or not withdrawing in a timely manner what we already provided in abundance, would do nothing to quell emerging inflationary pressures and might well compound them, proving doubly injurious to savers and the earnings of those who do have jobs," he said in prepared remarks.
Of the world's major central banks, the Federal Reserve has been perhaps the least worried about inflation.
But unlike its counterparts around the world, the Fed looks at so-called core inflation that strips out volatile energy and food prices. Core inflation in the U.S. remains low at 1.1% even as energy prices have surged 11% and food rose 2.3% over the last year.
Even Carl Icahn, one of President-elect Donald Trump's biggest cheerleaders on Wall Street, thinks the post-election exuberance in the stock market has gotten a bit out of hand. More
Republican leaders keep saying Obamacare is hurting the economy and killing jobs, but there's scant evidence for it. In fact, a number of studies show that the economy has been growing. More
Facebook admits it messed up more ad metrics than previously thought, potentially eroding its trust and relationship with marketers and publishers. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The Los Angeles city attorney is suing four major retailers over claims that they deliberately inflated the original price on some items that misled customers into thinking they were getting a better deal. More