That being said, Richmond Fed President Jeffrey Lacker still thinks it’s time for his misguided colleagues to do as he’s done: throw their hands up and just quit trying.
Mr. Lacker, an inflation hawk who has been a staunch opponent of the central bank’s bond-buying stimulus, says he expects policy makers will debate cutting back on the current $85 billion monthly pace of asset purchases at next week’s meeting.
But he added that despite a solid employment report for November showing over 200,000 new jobs were created, he didn’t foresee a renewed burst of hiring in the near term.
“Businesses appear to be quite reticent to hire and invest,” Mr. Lacker said in prepared remarks to a Charlotte Chamber of Commerce conference. “An imminent acceleration in employment does not seem likely to me….”
“Economic growth trends currently appear to be driven mainly by population growth and productivity growth, in which case monetary stimulus will only have limited and transitory effects,” Mr. Lacker said.
Fed’s Lacker Glum on Growth, Still Opposes Bond Buys [WSJ Real Time Economics blog]