Fed's Lacker favors asset sales as path to exit

BALTIMORE Fri Jan 8, 2010 3:10pm EST

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BALTIMORE Jan 8 (Reuters) - Jeffrey Lacker, President of the Federal Reserve Bank of Richmond, said on Friday he favored selling some of the assets on the central bank's balance sheet as a way to withdraw stimulus when the time comes.

"I thought asset sales made sense to look at first," he said, reiterating comments made previously.

His view points to a divergence of views on the matter within the central bank. Other top Fed officials, like Janet Yellen of the San Francisco Fed, have indicated they favor raising the interest rate the central bank pays on bank reserves. (Reporting by Pedro Nicolaci da Costa; Editing by Andrew Hay)