Fed Should Not Raise Rates To Fight Financial Risk

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Fed Should Not Raise Rates To Fight Financial Risk

by Wochit 0:30 mins

Fed Should Not Raise Rates To Fight Financial Risk

by Wochit 0:30 mins

By Ann Saphir CHICAGO (Reuters) - The Federal Reserve should not use monetary policy tools to head off potential risks to financial stability when other more effective tools, like supervision or monitoring, are available, a top Fed policymaker argued on Friday. Setting out a view that appears to be in line with the leadership at the U.S. central bank, Chicago Fed President Charles Evans said raising rates to tamp down risk-taking, when what the economy needs is support from low interest rates, is a "poor choice. ...

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