The Federal Reserve should resist interfering with the role of markets in allocating capital to issuers and risk to investors where possible, Jerome Powell, a member of the Fed's board of governors, said yesterday.

Powell told an audience at New York University the question of whether to "lean against" the credit cycle through supervisory policy was a "difficult one", especially when considering what tools to use and when to used them.

As a result, Powell favours setting a "high bar" for