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Financial stability should not become Fed’s third mandate: Mester

July 12, 2016 by · Leave a Comment 

Maintaining stability in financial markets should not be an explicit goal for the Federal Reserve, which should use interest rates to head off a crisis only if more precise and better-suited tools fail, a top Fed official said on Tuesday. “If our macroprudential tools proved…

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Financial stability should not become Fed’s third mandate: Mester