Fed's Lacker says fiscal stimulus would boost case for U.S. rate hikes

CHESTERTOWN, MD (Reuters) - The case for U.S. interest rate increases at the Federal Reserve will grow if the federal government uses tax cuts or increased spending to stimulate the economy, Richmond Federal Reserve President Jeffrey Lacker said on Monday. "Obviously the election seems to have shifted expectations" on fiscal policy, Lacker told reporters, adding it was too soon to know if Washington would crimp the central bank's independence following Republican Donald Trump's victory in the Nov. 8 presidential election. (Reporting by Jason Lange; editing by Diane Craft)