Fed's Lacker (hawkish, non voter): Markets should be able to deal with the Fed selling assets at a fairly rapid pace; US economy has its own wellsprings of growth
- Data-dependent Fed policy means there could be some volatility.
- There is no reason to intervene in times of market volatility, reasonably resilient financial markets should be able to handle volatility
- Not every instance of volatility is a crisis- Skeptical about relying very much on macroprudential policy or the ability to vary regulations in order to lean against the business cycle
- The October 15th selloff was not just about broker-dealer issues and regulations