Dallas Federal Reserve President Richard Fisher, who has long criticized the central bank's bond-buying stimulus, says the program has lasted too long and there are signs it is now distorting financial markets and encouraging risk-taking.

In a speech in Mexico City Wednesday, Fisher highlighted concerns that the Fed's policy stimulus is creating asset-price bubbles that "may result in tears" for investors acting on bad incentives.

"There are increasing signs quantitative easing has overstayed its welcome: Market distortions and acting on bad incentives are becoming more pervasive," Fisher told the Association of Mexican Banks.

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