BOSTON/SAN FRANCISCO, June 5 (Reuters) – A pair of Federal
Reserve officials on Wednesday warned that raising U.S. interest
rates to fend off bubbles and other troubling signs of financial
market unrest could undercut the Fed’s efforts to put the U.S.
economy on a sounder footing.
But they embraced broadly different approaches to address
the possibility that, as policymakers from Fed Chair Janet
Yellen on down have said, extremely loose monetary policy may be
encouraging businesses and households to take risks that set the
financial system up for another crash.