More Lacker
Lacker addressed the notion of the Primary Dealer Credit Facility saying that he does not think the market would be thrown into turmoil if the facility were removed and he noted the FED is seeing how the markets develop before extending the PDCF.
Lacker sees some scope for importing inflation due to the weak dollar and also notes that energy prices have the potential to bleed into Core Inflation but says that osmosis depends on consumer expectations. He. like other FED members, sees rising food and energy prices as being driven by fundamental demand.
On rates, Lacker says that the FED has to be prepared to raise rates, even in the face of higher unemployment and weak growth.