Richmond FRB`s President Jeffrey Lacker said during the Conference on Thursday that the FRS should keep monetary policy on hold rather than loosen conditions further given an anemic but ongoing recovery, He pointed out:"We should be standing pat now rather than easing policy further," and concluded: "It's not clear whether monetary policy, by itself, can bring about any material improvement in economic growth right now."
Lacker expected the US GDP to grow at 2% or above in 2013 and inflation to stay at or a little below the targeted 2% despite the recent rise of gasoline costs.
Key risks to the U.S. economy, including the fiscal cliff and Europe's recession, are likely to abate next year, Lacker said.