Lacker explains dissent after new Fed Twist plan (by Steve Goldstein)

WASHINGTON (MarketWatch) -- Richmond Fed President Jeffrey Lacker on Friday issued a statement explaining why he was the only one out of 12 Federal Open Market Committee members who voted against a policy to extend a bond swap program by $267 billion. He said the new policy won't make a substantial difference in economic growth and employment without increasing inflation by more than would be desirable. While the economic growth outlook "has clearly weakened," the impediments to strong growth are beyond the capacity of monetary policy to fix, he said. With inflation close to the 2% target, a significant rise could make it more difficult to achieve long-run goals. He said monetary stimulus could be appropriate if there's a substantial and persistent fall in inflation.