Fed's Lockhart Sees Fragile Credit Conditions in U.S.

Delivering opening remarks at the Atlanta Fed's Financial Markets Conference, Dennis Lockhart, head of the Atlanta Federal Reserve (non-voter) said credit markets remain fragile given a loss of confidence from the subprime crisis.

"Since last May, problems with subprime mortgages have triggered profound and worrisome consequences, not the least of which is a crisis of confidence among counterparties," he said.

The Atlanta Fed conference will see a variety of monetary policy-makers, including Fed Chairman Ben Bernanke, Philadelphia Fed President Charles Plosser and Fed Governor Kevin Warsh.

By Erik Kevin Franco and edited by Cristina Markham