Fed’s Quarles casts doubt on leaning against the wind
But we “do not fully understand” the potential trade-offs, he says
Monetary policy should generally focus on price stability rather than “leaning against the wind” and seeking to reduce financial imbalances, Federal Reserve vice-chair Randal Quarles said on May 30.
However, speaking at a research conference in Washington, DC, Quarles acknowledged there might be some circumstances where leaning using monetary policy tools could be justified. The decision would depend on the estimated severity of a potential crisis and the availability of suitable macro
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