Central Banking

Lacker pans Fed for risky "fiscal" action

A regional Federal Reserve president has warned that the recent expansion of the Fed's balance sheet is fraught with risks.

The monetary liabilities of the Federal Reserve banks have more than doubled since 11 September 2008, from about $840 billion to $1.7 trillion for the week ending 31 December. A surge in the amount of deposits that banks hold at the regional Feds, which soared from $8 billion to $848 billion over the period to the end of 2008, accounted for the expansion. Deposits have s