Photo: Richmond Fed
Richmond Federal Reserve President Jeffrey Lacker continues to position himself as the lone voice crying in what he believes to be an ever-inflating wilderness.In a statement released last evening, Lacker discussed his dissent in the most recent Federal Open Market Committee vote to keep interest rates at zero through 2014, saying conditions will likely have improved by then.
“The economy is expanding at a moderate pace, and inflation is close to the Committee’s 2 per cent objective,” he said. “As the expansion continues, the federal funds rate will need to rise in order to prevent the emergence of inflationary pressures.”
An increase in interest rates will therefore be necessary “sometime in 2013,” he said.