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