Financial Times FT.com

Economy & Fed

Fed looks at ways to fight asset bubbles

By Krishna Guha in Washington

Published: May 13 2008 23:56 | Last updated: May 13 2008 23:56

The US Federal Reserve is reconsidering the way it deals with asset price bubbles in the wake of the housing and credit bust, in a move that could see the central bank using regulation – or even interest rates – to fight unjustified increases.

Top officials are re-examining the Alan Greenspan doctrine that central banks should not try to tackle asset bubbles and should focus on mitigating the fallout when they burst.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this