Bloomberg News

Lacker Was ‘Hesitant’ About Fed Pledge, Virginia Business Says

September 29, 2011

Sept. 29 (Bloomberg) -- Federal Reserve Bank of Richmond President Jeffrey Lacker said he wasn’t convinced the central bank should commit to a specific date for keeping interest rates low, and didn’t believe more stimulus was needed, according to an interview published today by Virginia Business.

“Low interest rates right now are warranted,” he was quoted as saying during an interview in August, after the Fed decided to keep the fed funds rate near zero until at least mid- 2013. “But I was hesitant about committing implicitly to a particular date on the calendar,” he said, according to the magazine.

Lacker doesn’t hold voting power this year on the Federal Open Market Committee.

The U.S. economy will probably grow “very slowly and haltingly” at a rate of 2.5 percent to 3 percent “for some time,” he said, according to the magazine. Monetary policy can’t do much to help what ails the economy, said Lacker, adding that he didn’t think “more stimulus is warranted right now.”

--Eds: James Tyson, Kevin Costelloe

To contact the reporter on this story: Vivien Lou Chen in San Francisco at vchen1@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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