-
Fed’s Mester: Monetary Policy Is Second-Line Defense Against Bubbles
In a speech that didn’t comment on monetary policy outlook, Federal Reserve Bank of Cleveland President Loretta Mester said Monday U.S. officials need to be aware what impact ultra-low rates are having on the banking sector. Ms. Mester, whose comments came from a speech at a conference in Reykjavik, Iceland, also didn’t comment on the economic outlook. Instead, her speech was largely an overview of research on banking-related issues. Ms. Mester said in her speech that it is better for authorities to use regulatory and supervisory powers to deal with final imbalances, rather than monetary policy. “I would opt to ... (full story)