GO
Loading...

Fed's Lacker Says Broader Access To Credit Has Risks

Richmond Federal Reserve Bank President Jeffrey Lacker said on Thursday it was hard to know when restricting access to credit to protect some borrowers was worth choking off credit to others.

Lacker, opening a Fed-sponsored conference on community development, broadly addressed the heightened climate in Washington for action to address the pain being felt byborrowers in the subprime mortgage market who have now found they cannot afford their homes.

"If, as is sometimes the case, such measures restrict the availability of credit to borrowers who would not have suffered adverse outcomes, then one faces a trade-off. Does the benefit of preventing adverse outcomes for some outweigh the cost of restricting beneficial credit to others?," Lacker said. "We would do well to recognize the limit to our ability of make such judgments."

He did not comment on the outlook for the U.S. economy or Fed policy in his remarks.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More*

Don't Miss

U.S. Video

  • CNBC's Tyler Mathisen looks back at the week's top business and financial stories. The markets were closed for Thanksgiving, but did manage to hit new highs. Low oil prices gave consumers more money to spend for Black Friday.

  • Cyber Monday deals on Walmart's website on Dec. 2, 2013.

    CNBC's Tyler Mathisen looks ahead to what are likely to be next week's top stories. The jobs report comes out this week, as do auto sales. And the Rockefeller Center Christmas tree is lit.

  • Following last week's wild energy ride, analysts expect oil prices to continue to drop during the holiday season. CNBC's Patti Domm reports.