Fed could use rates to counter instability – Mester
2015 exercise showed major problems in use of macro-prudential tools, says Cleveland Fed chief
The US Federal Reserve Board might have to use monetary policy to deal with instability in the financial sector, despite several major problems with this, the president of the Federal Reserve Bank of Cleveland has warned.
“I believe monetary policy should remain focused on promoting price stability and maximum employment, and not be given a third objective of financial stability,” Loretta Mester told an audience in Philadelphia on January 6.
But the goals and actions of monetary policy were
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