By Michael Crittenden
The Federal Reserve shouldnt use monetary policy to address potential asset bubbles, Kansas City Fed President Thomas Hoenig said Tuesday.
Hoenig, appearing before a House of Representatives subcommittee, said the central bank cant solve every economic problem through monetary policy. Asked about the ability to pump up or deflate asset bubbles, Hoenig said the Fed should not be in a position of creating froth in the market any more than it should try and pinpoint some sector and eliminate that froth.
Tags: Monetary
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