Fed’s Lacker wants to get out of the rescue business

Some good points from Richmond Fed president Lacker. He wants the Fed to get out of the business of rescuing institutions and and markets, saying the Treasury should take that responsibility. He thinks mixing monetary policy with fiscal policy risks the loss of Fed independence. The Fed’s credit programs forces the central bank to pick and choose losers, something it should not do, he contends.

Markets remain jumpy at midday. Equities are not far from lows with the S&P down 3.7%. EUR/USD trades at 1.2585 while cable has recovered to 1.4035 after a slump to 1.3960.