Fed’s Lacker: New Bond Buying Won’t Work and Risks Fueling Inflation

Federal Reserve Bank of Richmond President Jeffrey Lacker said he opposed a decision by policy makers this week to press on with additional bond buying because the effort is ineffective and may speed up inflation.

“Further monetary stimulus now is unlikely to result in a discernible improvement in growth, but if it does, it’s also likely to cause an unwanted increase in inflation,” Lacker said in a statement Friday.

“Improvement in labor market conditions appears to have been held back by real impediments that are beyond the capacity of monetary policy to offset.”

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