Awwal 05, 1432 H/Feb 08, 2011, SPA -- The Federal Reserve should «quite seriously» rethink whether its $600 billion bond-purchase program is needed given the strengthening U.S. economy, AP cited a Fed official as saying Tuesday. Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said more spending by consumers and businesses means the economy probably will grow at a faster pace of around 4 percent this year, compared with 2.9 percent last year. Inflation should stay in check, he said in a speech in Newark, Delaware. But rising prices for commodities, such as oil, need to be closely watched, he added. Lacker participates in the Fed's policy discussions, although he isn't a voting member this year. Differing views from within the Fed about the size and pace of the bond program could make it harder for Fed Chairman Ben Bernanke to build consensus.
