Fed can't ignore stock, home prices says Bernanke

Fed chairman Ben Bernanke said in a written response to a senator that the US central bank cannot turn a blind eye to price changes for stocks and homes when deciding on interest rates, but should take action only when they threaten the overall economy.

"A central bank cannot ignore movements in stock prices, home values and other asset prices but should respond to them only to the extent that they have implications for future output and inflation," Bernanke said in a written response to quest

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