Moral hazard talk reveals Fed divide

Comments from regional Federal Reserve presidents have underlined a Federal Open Market Committee (FOMC) split over the central bank's support of Wall Street, particularly its bailout of Bear Stearns.

Jeffrey Lacker, the president of the Richmond Fed and a non-voting member of the FOMC, and Charles Plosser, head of the Philadelphia Fed and a voting member, both on Thursday cautioned that the central bank's support threatened to exacerbate the moral hazard threat.

Lacker was more vociferous in

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