Fed's Lacker says may need to raise rates before late 2014

WASHINGTON Fri Jan 27, 2012 12:46am EST

WASHINGTON Jan 27 (Reuters) - Richmond Federal Reserve Bank President Jeffrey Lacker said on Friday he voted against the central bank's decision this week to keep rates near zero until at least late 2014 because he believes rates will need to rise before then.

"I expect that as economic expansion continues, even if only at a moderate pace, the federal funds rate will need to rise in order to prevent the emergence of inflationary pressures. This increase in interest rates is likely to be necessary before late 2014," Lacker said in a statement made available on his website.

The full statement can be found at

FILED UNDER: