CHARLESTON, S.C. — Richmond Federal Reserve Bank president Jeffrey Lacker said yesterday that the Fed’s policymaking Federal Open Market Committee “guessed” at the impact that its expanded purchases of long-term securities would have on yields.

Lacker, a voting member of the FOMC, said the committee will need to regularly take stock of the size of its long-term securities purchases and make appropriate adjustments.

He said he favored buying longer term Treasury securities, as well as increased purchases of agency debt and agency-backed mortgage-backed securities, because they should have a more “neutral” impact on interest rates.

— Market News International

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