Fed's Lacker: Further QE reductions to be discussed at upcoming meetings

Richmond Federal Reserve President Jeffrey Lacker said on Friday that the FOMC would consider tapering QE further at the upcoming meetings. Despite today's poor NFP result he emphasized that the US labor market has shown "substantial improvement."

In a speech delivered to the Greater Raleigh Chamber of Commerce in Raleigh, North Carolina, and most probably prepared before the release of the jobs numbers, the Fed official suggested that inflation should rise towards the 2% target during the next couple of years.

"This is not a certainty, however, and I believe the FOMC will want to watch this closely," he added.

Lacker also projected that the pace of GDP growth would ease towards 2% in 2014, while productivity should increase by 1% in the next few years.