Fed's Lacker doubts more easing would spur growth
It is doubtful that another round of bond buying would boost economic growth, Jeffrey Lacker, the president of the Richmond Federal Reserve Bank, said Monday.
Many economists think following the Fed's interest-rate-setting-committee meeting last week that the central banks is now closer to launch another round of QE. "The impediments to growth are things that monetary policy is really not that capable of offsetting," Lacker said in an interview with the Fox Business Network.
Lacker said that growth has clearly weakened over the last few months, in part due to uncertainty about future government tax and spending policies. Lacker dissented from the Fed's action last week to extend its Operation Twist plan to bring down long-term yields.
Lacker said he expects inflation to stay close to the Fed's 2% target despite the recent softness in oil prices. Lacker said he favors steady policy and now sees the first rate hike coming in "late" 2013 due to the recent slowdown, later than the "mid" 2013 projection he made last month.