U.S. economic growth to continue at modest pace - Fed's Lacker

July 8 Tue Jul 8, 2014 1:00pm EDT

July 8 (Reuters) - Richmond Federal Reserve President Jeffrey Lacker said on Tuesday he expects U.S. economic growth to continue at a moderate pace, with inflation pressures remaining "well-behaved."

But Lacker said that at some stage the economy will have improved enough that banks could increase lending substantially, leading to rapid deposit growth and mounting inflationary pressures.

"Inflation, meanwhile, remains well-behaved, but maintaining that good performance will require withdrawing monetary stimulus at an appropriate time to prevent the emergence of inflationary pressures," Lacker said in prepared remarks at an event in Charlotte, North Carolina. (Reporting by Michael Flaherty; Editing by Paul Simao)