Fed's Lacker: Inflation contained but risks are mounting

RICHMOND, Virginia Tue Apr 2, 2013 8:19pm EDT

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, participates in a session titled, ''Help or Harm: Central Bank Monetary Policies at the Outer Limits'' NABE Economic Policy Conference in Washington March 5, 2013. REUTERS/Yuri Gripas

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, participates in a session titled, ''Help or Harm: Central Bank Monetary Policies at the Outer Limits'' NABE Economic Policy Conference in Washington March 5, 2013.

Credit: Reuters/Yuri Gripas

RICHMOND, Virginia (Reuters) - Inflation remains under control but the aggressive policy action of the Federal Reserve is raising risks that inflation could creep higher in 18 months to two years' time, a senior central banker said on Tuesday.

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said he based that view on his concern that the Fed would delay its exit from ultra-easy monetary policy until it was too late.

"I'm nervous, at that point in time we'll be too cautious," he said in a joint panel discussion with Chicago Fed chief Charles Evans.

(Reporting By Alister Bull; Editing by Leslie Adler)

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