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US economic growth to continue at modest pace: Fed's Lacker

Jeffrey Lacker, president of the Federal Bank of Richmond.
Justin Solomon | CNBC
Jeffrey Lacker, president of the Federal Bank of Richmond.

Richmond Federal Reserve President Jeffrey Lacker said on Tuesday he expects U.S. economic growth to continue at a moderate pace, with inflation pressures remaining "well-behaved."

But Lacker said that at some stage the economy will have improved enough that banks could increase lending substantially, leading to rapid deposit growth and mounting inflationary pressures.

Watch: US economy: On track or cause for concern?

"Inflation, meanwhile, remains well-behaved, but maintaining that good performance will require withdrawing monetary stimulus at an appropriate time to prevent the emergence of inflationary pressures," Lacker said in prepared remarks at an event in Charlotte, North Carolina.

—By Reuters

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