RICHMOND — Richmond Federal Reserve Bank President Jeffrey Lacker argued Friday that the Fed cannot effectively stimulate the economy in the face of fiscal, regulatory and other forces and that continuing to pump money into the economy through asset purchases increases financial risks.

In the first public speech on the economy by a Federal Open Market Committee member since the FOMC opened the door to expanded asset purchases Wednesday, Lacker said the economy has likely settled into a 2% growth trend, which the Fed is unlikely to be able to accelerate, for a host of reasons.

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