One of the objectives of Federal Reserve policymakers in expanding bank reserves and extending the period of near-zero short-term interest rates in September was “to depreciate the dollar,” Richmond Federal Reserve Bank President Jeffrey Lacker said Wednesday. But in its efforts to stimulate the economy by this and other means, the Fed is running the risk of eroding public and market confidence in its commitment to price stability, and this could lead to accelerating inflation, Lacker warned in an exclusive interview with MNI. Already, there are signs of higher inflation expectations, although they have not yet ... (full story)