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Jeffrey M. Lacker

Aug. 3, 2012

Richmond Fed President Lacker Comments on FOMC Dissent

Richmond, Va.

"The Federal Open Market Committee released a statement on August 1, 2012, following its meeting, stating that the Committee currently anticipates that economic conditions are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

"I dissented because I believe that exceptionally low federal funds rates are not likely to be warranted for this length of time. My assessment is that significant uncertainty regarding the evolution of economic conditions over the next few years makes the future path of interest rates difficult to forecast. The Committee's statement implies more confidence about the persistence of low interest rates than I believe is justified by the current outlook. I also believe that information about Committee participants' views regarding the future path of interest rates would be better provided by the Committee's Summary of Economic Projections.

"My views on the economy and monetary policy are also available on richmondfed.org."


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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