Two Fed Skeptics of QE Say Inflation Underscores Program Risks

Two Federal Reserve Bank presidents skeptical about the Fed’s $600 billion bond-buying program said the prospect of accelerating inflation underscores the risk from a record increase in the central bank’s balance sheet.

Richmond Fed President Jeffrey Lacker said yesterday policy makers need to take “quite seriously” their commitment to review the program as the U.S. recovery quickens. The Dallas Fed’s Richard Fisher, who votes this year on the policy-setting Federal Open Market Committee, said the central bank is “pushing the envelope” with its purchases and that he’d oppose any proposal to do more.