Skip to content
Subscriber Only
Business
Economics

Stein Says Fed Should Weigh Financial Risks in Stoking Job Gains

Federal Reserve Governor Jeremy Stein said monetary policy should be less accommodative when bond markets are overheated even if it raises the risk of higher unemployment.

The remarks suggest financial stability should receive strong consideration as the Fed pursues its two mandates -- stable prices and maximum employment -- because financial crises can do so much damage to jobs and growth.