Fed’s top Wall Street regulator says interest rates not best tool to stop financial panics - MarketW

The Federal Reserve’s chief overseer of Wall Street says central banks should still focus on low inflation and stable employment when setting interest rates instead of trying to use monetary policy to head off potential threats to the financial system.   Randal Quarles, a Fed board member and vice chairman of supervision, said Thursday that monetary policy is not ideally suited to help prevent a deterioration in the financial system, like the one that struck the U.S. and global economies in 2008.

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