Press Releases

Jeffrey M. Lacker

Nov. 30, 2011

Jeffrey M. Lacker, President, Federal Reserve Bank of Richmond Statement on Dissenting Vote at FOMC Meeting November 28, 2011

Richmond, Va.

"On November 28, the Federal Open Market Committee voted 9 to1 to take coordinated action with other central banks to enhance their capacity to provide liquidity support to the global financial system. I participated in the FOMC vote as an Alternate to Charles Plosser, President of the Federal Reserve Bank of Philadelphia, who was unable to attend.

"I dissented on the vote because I opposed the temporary swap arrangements to support Federal Reserve lending in foreign currencies. Such lending amounts to fiscal policy, which I believe is the responsibility of the U.S. Treasury. The Federal Reserve has provided and can continue to provide sufficient dollar liquidity through purchases of U.S. Treasury securities. I also opposed lowering the interest rate on swap arrangements to below the primary credit rate.

"My views on central bank lending were also discussed in a November 16, 2011 speech."


As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District—including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia—to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

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