Fed's Fisher dissatisfied with the progress of global economic recovery

Fed's Vice Chairman Stanley Fischer said on Monday in a speech at an economic conference in Sweden that global recovery was lagging and that potential global growth might have sustained lasting damage.

In the US, such problems as a slowdown in productivity, weak foreign demand and the tepid housing market could suggest that the country's long-run year-on-year growth projection could now be seen only at around 2%.

Fisher also commented on the effects of the Fed's QE program which he considers successful but making it harder for the central bank to manage short-term interest rates.

The Fed policymaker also pointed to the economic slowdown in emerging markets which in his opinion should be tackled with tighter financial regulation. He also called for a better coordination of global bank regulation.