BOSTON: A top US Fed official on Friday came out strongly against adding the goal of stabilising the financial system to the US central bank’s list of duties, saying that doing so would add to public uncertainty.

There is already too much uncertainty around the Fed’s existing goals of achieving 2pc inflation and full employment, said Minne­apolis Fed President.

Concerns about possible bubbles in the financial system have increasingly come to the foreground as policymakers consider when to begin to raise rates held near zero for almost seven years.

Policymakers from Fed Chair Janet Yellen on have publicly worried that keeping borrowing costs too low for too long can fuel too much risk-taking by investors.

Published in Dawn October 3rd, 2015

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