Economics
Tarullo Backs Option of Using Rates Against Price Bubbles
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Federal Reserve Governor Daniel Tarullo said central bankers must preserve the option of using interest rates to lean against dangerous financial bubbles even as they strengthen supervisory tools to curtail systemic risk.
“Monetary policy action cannot be taken off the table as a response to the build-up of broad and sustained systemic risk,” Tarullo said today at a conference of the National Association for Business Economics in Arlington, Virginia.