Fed’s Kohn rejects bubble claims
Donald Kohn, the vice chairman of the Federal Reserve, has denied the central bank's extraordinarily loose monetary policy is fuelling asset-price bubbles.
Speaking in Illinois on Monday, Kohn acknowledged very low rates in the US and other advanced economies were an "important factor" in the recent rise in asset prices. However, he viewed this as one of the purposes of such a policy in order to lower the cost, and increase the availability, of capital to households and businesses.
Though he
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