Tuesday, January 29, 2013

Fed's Lacker Repeats Warning: Inflation May Rekindle

The Federal Reserve's latest stimulus plan will not do much to boost growth and raises the risk of inflation next year, Richmond Fed Bank President Jeffrey Lacker said on Tuesday, echoing remarks he made last week.

"It is unlikely that the Federal Reserve can push real growth rates materially higher than they otherwise would be, on a sustained basis," he said in a speech to a business group.

"I see an increased risk, given the course the (Fed's policy) committee has set, that inflation pressures emerge and are not thwarted in a timely way. I see material upside risks to inflation in 2014 and beyond, given the current trajectory for monetary policy," he said.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

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