Fed's Lacker: Market moves should not hurt growth

There is likely to be more market volatility about the outlook for monetary policy in coming months, but these moves in asset prices should not interfere with a modest economic recovery, said Jeffrey Lacker, president of the Richmond Fed Bank, on Friday. In a speech in White Sulphur Springs, W. Va., Lacker said the volatility in the wake of last week's Fed meeting was not surprising as markets had to re-evaluate the likely total amount of securities the central bank would buy under QE3 and also reconsider their estimate of when policymakers "would begin to remove the punch bowl by raising rates." As investors gain more insight from the words of Fed officials or by policy actions, "further asset price volatility seems likely," Lacker said