Fed's Kohn on monetary policy and uncertainty

In the speech 'Monetary policy and uncertainty' given on 1 December Donald Kohn of the Federal Reserve said policy makers should avoid relying on any single indicator because of uncertainties surrounding the accuracy of economic data and public behaviour.

``Monetary policy should not respond too strongly to any one economic indicator,'' Kohn said. ``Central banks should be cautious about boldly acting on the prescriptions of any one model.''

Kohn said the reliability of market indicators and

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