Fed’s Lacker opposes Fed issuing own debt

Janet Yellen was a proponent of the Fed issuing debt in its own name in her speech yesterday but Jeffrey Lacker is on the other side of the debate today. He thinks the Fed issuing debt would inject politics into the central bank, something he would like to avoid.

If the Fed were to issue debt, it would be used to offset the giant holdings in US Treasuries it will amass via quantitative ease.

The Fed’s Plosser is on the wires, siding with Lacker on this one…