Federal Reserve

Fed's Lacker: Expect a positive GDP reversal in the second quarter

Fed's Lacker evaluates crisis lending

Following a drop in estimated GDP growth in the first quarter, Federal Reserve Bank of Richmond President Jeffrey Lacker said he expects a positive GDP reversal in the second quarter.

He called the 1 percent drop in GDP growth during the first quarter "not unexpected given the data flow we'd seen since the first release," adding that he's "not too concerned."

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Fed's Lacker: GDP decline not unexpected

Richmond Fed Reserve President Jeffrey Lacker has long called for a narrower and more restrained role for the central bank, arguing that it should shift back to a more traditional and less interventionist role.

Earlier this month, he said the central bank's ambitious use of balance sheet as a way to channel credit to particular economic sectors threatens to entangle the Fed in politics and puts the bank's independence at risk.

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--Reuters contributed to the report.