I don't even have any comments on this. As I've said all along, regulation and supervision are needed in the banking sector (and most notably in the non-banking sector, lest we experience AIG Parte Dos at some point in future) but rushed regs squeezed out of a panic will only lead to a bigger mess down the road. Philly Fedhead Charles Plosser seems to have his wits about him (the same cannot be said of chief tool Bernanke, but I digress) and his thoughts are, as always, nearly dead-on. Take it away, Plosser:

(RTTNews) - Philadelphia Federal Reserve President Charles Plosser urged monetary policymakers to tread carefully when moving through this unprecedented financial crisis, stressing four principals for sound central bank policymaking. Speaking in Chicago on Tuesday, Plosser urged patience in making regulatory reforms.

Plosser has been hesitant about the recent expansion of the Federal Reserve's role, urging policymakers to remember that price stability is the first and foremost goal of the U.S. central bank. He called for policymakers to avoid "quick fixes," and to avoid rushing into reforms without fully examining the possible outcomes.

"Nevertheless, we can and should think about ways to strengthen market discipline," Plosser said in prepared remarks delivered to the University of Chicago Booth School of Business in Chicago. "And while I am not convinced that simply creating more regulations will guarantee financial stability, it is clear we can have better regulation and greater stability if sound principles guide our policymakers."

The Fed must not accept unrealistic expectations, Plosser warned, stating that "over-promising can erode the credibility of a central bank's commitment to meet any of its goals."

Along that line, to ensure that policymakers remain within their limits, Plosser called for the Fed to conduct policy in a "systematic way over time," despite the financial turmoil.

Finally, he urged that the Fed be continue to "pursue its policies independently from the political process and fiscal authority."

And all the Fed-watchers in the church say "Amen."