Fed's job not to bail out risk takers: Fisher

Federal Reserve Bank of Dallas President Richard Fisher in an undated file photo. The Federal Reserve's role is not to bail out risk takers but to protect the banking system and the economy, Fisher said on Thursday.

LAS CRUCES, New Mexico (Reuters) - The U.S. Federal Reserve's role is not to bail out risk takers but to protect the banking system and the economy, Federal Reserve Bank of Dallas President Richard Fisher said on Thursday.

Commenting on the recent market turmoil of asset-backed paper and derivatives markets, he said: "The job of the Federal Reserve is not to bail out risk takers. You're a big boy, you take risks, you bear the consequences."

"The job of the Federal Reserve is to protect the financial system and the economy of the United States," Fisher told a community forum hosted by the Dallas Fed's El Paso branch.

He reiterated that he did not yet know the impact of the recent financial market turmoil on the economy.