Lacker: More Fed Stimulus Won’t Help Economy, May Stoke Inflation

“The Federal Reserve’s latest monetary stimulus risks higher inflation and will not do much to boost a weakening U.S. economy, the central bank official who dissented against the decision said on Friday.

The Fed on Wednesday announced it was prolonging its efforts to pressure long-term borrowing costs lower even as it slashed forecasts for U.S. economic growth.

But Jeffrey Lacker, an inflation hawk who has opposed every one of the central bank’s decisions since rotating into a voting seat this year, argued the new policy will not work.”

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