WASHINGTON (MNI) – The following text is a statement by Richmond
Federal Reserve President Jeffrey Lacker Wednesday explaining his
dissenting vote at the November 28 meeting of the Federal Open Market
Committee:
“On November 28, the Federal Open Market Committee voted 9 to 1 to
take coordinated action with other central banks to enhance their
capacity to provide liquidity support to the global financial system. I
participated in the FOMC vote as an Alternate to Charles Plosser,
President of the Federal Reserve Bank of Philadelphia, who was unable to
attend.
I dissented on the vote because I opposed the temporary swap
arrangements to support Federal Reserve lending in foreign currencies.
Such lending amounts to fiscal policy, which I believe is the
responsibility of the U.S. Treasury. The Federal Reserve has provided
and can continue to provide sufficient dollar liquidity through
purchases of U.S. Treasury securities. I also opposed lowering the
interest rate on swap arrangements to below the primary credit rate.
My views on central bank lending were also discussed in a November
16, 2011 speech.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$,MN$FX$]
