Fed's Lacker sees inflation risk next year

COLUMBIA, South Carolina Tue Jan 8, 2013 3:04pm EST

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, speaks during the Charlotte Chamber's Economic Outlook Conference in Charlotte, North Carolina December 17, 2012. REUTERS/Chris Keane

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, speaks during the Charlotte Chamber's Economic Outlook Conference in Charlotte, North Carolina December 17, 2012.

Credit: Reuters/Chris Keane

COLUMBIA, South Carolina (Reuters) - 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 in a speech on Monday that largely echoed remarks on Friday.

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

"I see an increased risk, given the course the 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.

(Reporting By Rick Rothacker)

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