Bloomberg News

Lacker Says Fed Swap Arrangements Amount to ‘Fiscal Policy’

December 06, 2011

Nov. 30 (Bloomberg) -- Federal Reserve Bank of Richmond President Jeffrey Lacker said he dissented against the Federal Open Market Committee’s currency-swap decision because it was a form of fiscal policy.

“I opposed the temporary swap arrangements to support Federal Reserve lending in foreign currencies,” Lacker said in a statement released on the Richmond Fed’s website. “Such lending amounts to fiscal policy, which I believe is the responsibility of the U.S. Treasury.”

Lacker said he also opposed lowering the interest rate on the swap arrangements below the Fed’s so-called discount rate on direct loans to banks.

--Editors: Chris Wellisz, Carlos Torres

To contact the reporter on this story: Craig Torres in Washington at

To contact the editor responsible for this story: Christopher Wellisz at

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