WASHINGTON Jan 16 While the Federal Reserve is
dialing down its bond-buying based on economic improvements,
policymakers need to keep "open minds" about how such stimulus
affects asset prices and could lead to bubbles, a top U.S.
central banker said on Thursday.
San Francisco Fed President John Williams, speaking at a
Brookings Institution event attended by Fed Chairman Ben
Bernanke and Fed Vice Chair nominee Stanley Fischer, added the
first line of defense against bubbles should be financial
regulation, not monetary policy.