In a speech today in Baltimore, Richmond Fed President Jeffrey Lacker said that he agrees with the view of most economists that U.S. inflation will be “a little less than 2 percent” in 2013. But Lacker, who is rotating out as a voting member of the FOMC, continues to remain vigilant on future inflation:
I see an increased risk, given the course the Committee has set, that inflation pressures emerge and are not thwarted in a timely way. I intend to remain alert for signs that our monetary policy stance needs adjustment.
St. Louis Fed President James Bullard, who is rotating in as a voting member of the FOMC, told CNBC that he supports the position revealed in yesterday’s release of the FOMC minutes that the Fed may cease its bond buying later this year. Bullard said he expected the unemployment rate to fall to around 7% in 2013, and that he favors the Fed’s current plan to maintain its stimulus program until the unemployment rate reaches 6.5%.