Unconstitutional Fed aid a threat to independence

The Federal Reserve risks incurring the wrath of Congress and limiting its independence with its credit policy, Jeffrey Lacker, the president of the Richmond Federal Reserve and a voting member of the Federal Open Market Committee, has warned.

Lacker told an audience in Virginia on Monday that many of the Fed's credit programmes constituted fiscal support and may result in the central bank's monetary policy independence be questioned by those on the Hill.

"Government lending, whether by the F

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