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Post by bot on Jul 8, 2014 22:18:14 GMT -5
WASHINGTON (MarketWatch) -- Keeping inflation under control will require the Federal Reserve to be pre-emptive, said Jeffrey Lacker, president of the Richmond Fed, on Tuesday. "Maintaining that good [inflation] performance will require withdrawing monetary stimulus at an appropriate time to prevent the emergence of inflationary pressures," Lacker said in a speech to the Rotary Club in Charlotte, N.C. Lacker, who is not a voting member of the Fed policy committee this year, said the Fed's most recent forecasts released after its policy committee meeting last month show the first rate hike rising sometime next year while inflation is at or below the Fed's 2% target. "This is consistent with the FOMC's past practice of raising rates pre-emptively," he said. Lacker said inflation will likely continue to grow this year. The strong June job report is more representative of economic trends that the depressed first quarter gross domestic product measure, he said. But Lacker added he still expects growth to stay moderate this year, averaging between a 2% and 2.5% annual rate, in part because consumer spending won't accelerate significantly.
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