Lacker Says Fed Easing Can't Fix Structural Unemployment

Federal Reserve Bank of Richmond President Jeffrey Lacker said much of U.S. unemployment results from structural weaknesses like inadequate training that can’t be fixed by additional Fed stimulus.

“Some commentators are urging the Fed to take additional action as long as the unemployment rate remains elevated,” Lacker said today in Greensboro, North Carolina. “But if elevated unemployment reflects largely fundamental factors rather than insufficient spending, such stimulus might have little impact on unemployment and instead just raise the risk of pushing inflation up.”