Fed’s Lacker Opposes Linking Policy to U.S. Unemployment

Federal Reserve Bank of Richmond President Jeffrey Lacker said he opposes a proposal to tie central bank stimulus to the U.S. unemployment rate because such a move may spur inflation.

“Crisp numerical thresholds may work well in the classroom models used to illustrate policy principles, but one or two economic statistics do not always capture the rich array of policy-relevant information about the state of the economy,” Lacker said today in a speech in New York.