Federal Reserve Bank of Richmond president Jeffrey Lacker Tuesday said the Fed cannot “take for granted” that the upsurge in inflation will be temporary, and so must act to confirm expectations that inflation will be low over time.

Lacker, in remarks prepared for delivery to business and community leaders in Arlington, Va., did not say when he thinks the Fed should tighten monetary policy, but said the pending conclusion of the $600 billion program of quantitative easing “should be the high-water mark” for monetary stimulus.

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