Poole says Fed should not react to volatility

William Poole, the president of the Federal Reserve Bank of St Louis, says there is no need for the Fed to react immediately to recent volatility in the financial markets.

The central bank would not ignore last week's stock market declines and increases in risk spreads, Poole said, "but it is important that the Fed not permit uncertainty over policy to add to the existing uncertainty."

Poole added that the market understands that "the Fed will act in due time if and when evidence accumulates th