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Fed's Lacker sees inflation risk next year
January 8, 2013 / 8:11 PM / 5 years ago

Fed's Lacker sees inflation risk next year

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

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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