Fed's Lockhart: cash injections not inflationary

ATLANTA (Reuters) - Federal Reserve Bank of Atlanta President Dennis Lockhart said on Monday that massive liquidity injections by the U.S. central bank to thaw frozen credit markets would not spur inflation.

"I'm quite confident that the inflationary pressure that might come if the money supply was growing dramatically...is not going to occur," Lockhart told the Buckhead Rotary Club in response to an audience question.

He said the Fed tried to actively manage the country's monetary base under its regular open market operations. The Fed has injected over $1 trillion into the financial system in an attempt to unlock them amid panic over losses stemming from the home loan market.