Yellen takes sides in ‘lean against the wind' debate

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Janet Yellen, chair of the Federal Reserve, appeared to take sides in the contentious debate over whether central banks should use monetary policy to ‘lean against' economic imbalances today, arguing it faces "significant limitations as a tool to promote financial stability".

Yellen said the effects of monetary policy on financial vulnerabilities, such as excessive leverage and maturity transformation, were "not well understood", and that efforts to promote financial stability through adjustment

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