WASHINGTON (AP) — The lone dissenter to the Federal Reserve's decision to launch a third round of bond buying to boost the economy says he doesn't think it will provide much help. He also says it runs the risk of making future inflation worse.
Jeffrey Lacker, the president of the Richmond Federal Reserve Bank, opposed the Fed's action to begin buying $40 billion a month in mortgage-backed securities and keep making those purchases until the labor market improves. The Fed's action Thursday triggered a rally on Wall Street and in financial markets around the world.
Lacker said in a statement Saturday that he believes the labor market is being held back by factors beyond the capacity of the Fed to offset. The Fed vote was 11 to 1.