New York Fed President Bill Dudley said Wednesday he would be open to new bond market rules if they would improve liquidity.
However, "we certainly don't want to undermine the progress we have made" after the crisis, he said.
Dudley also said that bond market rules are not solely to blame for changes within the bond market and, even if they were to blame for lower liquidity, one important tradeoff is a more resilient market.
"Even if one were to interpret the evidence as indicating that liquidity has been reduced, it is not clear whether regulation is the primary driver, as other changes have played important roles as well," he said at a securities industry event. "The evidence to date that liquidity has diminished markedly is, at best, mixed."
Dudley, a voting member on the Fed's policy setting committee, said Monday the central bank would likely raise interest rates this year and could reach its inflation target by next year.
The Fed's Federal Open Market Committee is scheduled to meet in October and in December.
—Reuters contributed to this report.