Yellen says Fed shouldn't target bubbles

It should not be the Federal Reserve's role to directly target its policies at bursting possible asset bubbles, San Francisco Fed president Janet Yellen said Thursday 19 January.

Yellen said attempting to target asset prices risked imposing harm on the economy and should only be done if policy-makers were certain they could spare the economy from greater harm down the road.

Still, the Fed "clearly does, and should" respond to issues of asset prices to the extent they affect its twin mandated goals

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