Responding to the financial crises gripping Asia and Russia, Federal Reserve Board Governor Edward M. Gramlich on Tuesday advocated limited controls on the free flow of international capital.

"There may be occasional instances where some restrictions are necessary to control extreme capital flows not justified by economic fundamentals," Mr. Gramlich said at Carnegie Mellon University in Pittsburgh.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.