Evans, Charles

While recent events have indeed imposed significant costs on society, I fear that monetary policy tools may be too blunt for such a fine-tuning policy.⁵ Central bankers have imperfect information, and for many asset classes, sudden price declines may have minimal impact on the real economy.⁶ So, my concern is that using monetary policy to "lean against bubbles" could end up causing more harm to the economy than good.

See Dudley's comments on asset price targeting.