Bernanke: Policymakers Must Prevent Future Bubbles

Reuters

Federal Reserve Chairman Ben Bernanke said on Tuesday policymakers may need to use monetary policy tools to halt asset bubbles from forming in the future, even though other methods are preferable.

"The possibility that monetary policy could be used directly to support financial stability goals, at least on the margin, should not be ruled out," he said at a conference at the Boston Fed.

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(Reporting by Kristina Cooke, writing by Mark Felsenthal)

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