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Fed will be in uncharted waters in eventual exit: Lacker

ROANAOKE, Virginia (Reuters) - The Federal Reserve has tools to raise interest rates when conditions warrant but many are still untested, Richmond Fed President Jeffrey Lacker said on Monday.

In particular, Lacker said the central bank has never used the payment of interest on reserves as its primary policy tool.

"We've never done this before," he said.

(Reporting By Pedro da Costa; Editing by Chizu Nomiyama)