September 19, 2012 / 12:35 AM / 5 years ago

Fed's Lacker says open-ended easing moderates inflation risk

Richmond Federal Reserve Bank President Jeffrey Lacker speaks during the Charlotte Chamber's Economic Outlook Conference in Charlotte, North Carolina December 19, 2011. REUTERS/Chris Keane

NEW YORK (Reuters) - Keeping the Federal Reserve’s latest stimulus efforts open-ended lowers the bar for stopping the program if inflation pressures should emerge and become destabilizing, Richmond Fed President Jeffrey Lacker said on Tuesday.

The Fed last week launched an aggressive new effort to energize the economy, saying it would buy $40 billion a month in mortgage-backed securities until it sees a sustained upturn in the weak jobs market.

The open-ended flexibility was a “positive feature,” said Lacker, who was the lone dissenter against the decision.

Reporting by Leah Schnurr; Editing by Leslie Adler

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