After “considerable progress” in conditions since the economy tanked, it is “quite hard to justify additional monetary stimulus, absent a dramatic deterioration in economic conditions,” and the current level of accommodation will not be warranted through 2014, Federal Reserve Bank of Richmond president Jeffrey Lacker said Wednesday.

“My projection is that if we want to keep inflation at 2%, we will likely need to raise rates in 2013,” Lacker told a Hampton Roads conference, according to prepared text released by the Fed. “Incoming data could change my assessment in either direction.”

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