Policymakers added to volatility: Fed's Lacker

Shifts in expectations regarding the chances of official intervention may have made financial markets more volatile, said Jeffrey Lacker, the president of the Richmond Federal Reserve.

Lacker said that market participants had at times faced uncertainty about prospective public sector intervention and that such disparate responses to potential failures at several high-profile organisations may have made it difficult for market participants to forecast whether, and in what form, official support

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