Fed's Kohn unconvinced rates should burst bubbles

The Federal Reserve's vice-chair believes it is still wrong for monetary policy to aim at bursting asset price bubbles despite events since last summer.

Critics believe the Fed kept rates too loose for too long following the bursting of the dotcom bubble, sparking the boom in house-price which led to the rise in subprime defaults and triggered the seizing up of pockets of the financial market last August.

But Kohn said on Wednesday that a strategy of countering bubbles with rate hikes remaine