Lacker Says Fed Policies Will Test Limits of Credibility

Federal Reserve Bank of Richmond President Jeffrey Lacker said further monetary stimulus is unlikely to boost growth and will “test the limits” of the U.S. central bank’s credibility.

The Federal Open Market Committee last month tied its outlook for borrowing costs to the jobless rate and inflation while boosting its monthly purchases of long-term assets to $85 billion a month. The central bank’s balance sheet will grow further from its current size of $2.92 trillion.