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Post by bot on Jul 2, 2014 19:38:51 GMT -5
Yellen: Rate policy needs to focus on employment, not financial stability WASHINGTON (MarketWatch) - Financial stability concerns are not severe enough for monetary policy "to deviate" from its primary focus on low unemployment and price stability at the moment, but some pockets of risk taking bear watching, Federal Reserve Chairwoman Janet Yellen said Wednesday. In a speech at the International Monetary Fund, Yellen said that effective bank supervision must play the "primary role" in preventing future asset bubbles and crises. "Monetary policy faces significant limitations as a tool to promote financial stability," Yellen said. But she said there may be times that interest rates should be raised to ameliorate emerging risks.
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