The Traderszone Network

Published in TZ Latest News 30 May, 2014 by The TZ Newswire Staff

Fed officials say rates should not be used to fight bubbles

A trio of Federal Reserve officials who disagree deeply with one another over the appropriate stance of monetary policy on Friday expressed a shared distrust for using interest rates to head off asset bubbles and other forms of financial instability. Both Richmond Fed President Jeffrey Lacker, a policy hawk, and San Francisco Fed President John Williams, a centrist, told reporters after a policy conference here that they would not want to risk unmooring the public’s expectation that inflation will rise back to the Fed’s 2 percent goal in the next few years.

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