Tags: fed | lacker | easing | economy

Fed’s Lacker: More Easing May Not Spur Economy

Monday, 03 Oct 2011 07:39 PM

Federal Reserve Bank of Richmond President Jeffrey Lacker said additional easing by the central bank may not bolster U.S. economic growth because regulations, fiscal policy and lack of job skills are impairing employment.

“I tend to be skeptical” that monetary policy will spur growth, Lacker said Monday in response to audience questions in Madison, Wisconsin. “I tend to think it would cause higher inflation” and only have a “fleeting effect” on the recovery.

“Our role is fairly limited in terms of increasing growth,” Lacker said after a speech, referring to the central bank. Lower 10-year Treasury yields probably won’t provide much stimulus, he said.

Policy makers voted Sept. 21 to push down mortgage and other loan rates in an effort to spur growth and employment. The Fed plans to extend maturities of the Treasuries in its portfolio by buying $400 billion of long-term debt and selling an equal amount of shorter-term securities.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
Federal Reserve Bank of Richmond President Jeffrey Lacker said additional easing by the central bank may not bolster U.S. economic growth because regulations, fiscal policy and lack of job skills are impairing employment. I tend to be skeptical that monetary policy will...
fed,lacker,easing,economy
152
2011-39-03
Monday, 03 Oct 2011 07:39 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved