Atlanta Federal Reserve Bank president Dennis Lockhart said yesterday that while economic and financial conditions have improved, it’s too soon to relax.

Lockhart was opening the Atlanta Fed’s annual financial conference, held this year for the first time on Jekyll Island, where a group of leading bankers and politicians met in 1910 to brainstorm the creation of a new U.S. central bank in wake of the Panic of 1907. “I believe conditions now are calmer, but it’s too soon to breathe easy,” he said.

Reformers face a “baby and bathwater challenge,” he said. “We don’t want to regulate innovation away, but we want regulation to evolve with it” and “limit the systemic risks that comes with it.”

— Market News International

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