Fed's Fischer Supports Higher Rates If Markets Overheat

Updated on
  • Rise would be appropriate if asset prices `excessively high'
  • Fed lacks some macro-prudential tools to attack bubbles

Fischer Backs Higher Rates If Markets Were Overheating

Federal Reserve Vice Chairman Stanley Fischer said it might be necessary for the central bank to increase interest rates if financial markets were overheating, though the first line of defense should be using regulatory tools to prevent bubbles from developing.

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