Federal Reserve Bank of St. Louis President William Poole said turmoil in financial markets is showing signs of easing, though continued weakness in housing and credit markets may hurt economic growth.

"Financial markets appear to be stabilizing, but they have not returned to normal and are still fragile," Poole said in a speech to the Industrial Asset Management Council in St. Louis. There remains a "substantial distance to go," and "we do not know" how long it may take, he said.

Poole also said that U.S. is in "uncharted territory" with falling home prices. His speech suggests he remains more concerned with risks to growth than threats of inflation, even though he highlighted that employment accelerated in September and revised figures for August showed an unexpected gain.

The September jobs report "does not suggest that the downside risk is occurring and revisions in the report for August "remind us that it is a mistake to place too much weight on any one report," Poole said