Kohn defends Fed against moral hazard claims
Donald Kohn, the vice-chairman of the Federal Reserve, defended the Federal Reserve against claims that its monetary policy feeds moral hazard because its responses to booms and busts in asset prices are asymmetrical.
Speaking at the Bundesbank on Friday, Kohn said: "Federal Reserve policy makers have not been asymmetrical in intent or in actions, in that we have always focused sharply on the macro-economy. Asset prices have mattered in the determination of policy because they have mattered for
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