GO
Loading...

Enter multiple symbols separated by commas

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

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Dani Mathers, the 2015 Playmate of the Year, poses during a luncheon on the garden grounds of the Playboy Mansion in Los Angeles, May 14, 2015.

    Playboy on Thursday launched its completely safe-for-work mobile app Playboy NOW, part of a strategy to make more mainstream content.

  • Li Hejun, Hanergy Holding Group

    In the history of sudden wealth loss, Li Hejun may have set a new record.

  • Marc Cuban

    Ask Mark Cuban what the next big thing in technology is, you'll get an answer straight out of a science fiction film.

U.S. Video

  • Summer stock moves

    CNBC's Dominic Chu takes a look at the old adage: "Sell in May and go away," to see if there are some stocks investors may want to put on summer retreat this year.

  • Unicorn bubble trouble brewing?

    Kevin Kinsella, Avalon Ventures founder, provides insight into venture capital firms betting big on startups and whether the play is getting too crowded.

  • Destination Cuba

    Nathan Lump, Travel + Leisure editor, discusses tourism potential in Cuba, and summer travel deals abroad.