A top U.S. Federal Reserve (Fed) official said on Monday that monetary policy cannot speed up the labor market recovery or prevent asset price “bubbles.” Philadelphia, Pennsylvania Fed Bank President Charles Plosser cautioned against relying too much on the central bank and said its powers should be limited to prevent abuse. “I believe we have come to expect too much from monetary policy,” Plosser said in a speech to be delivered in Santiago, Chile, on Monday. “Monetary policy is not going to be able to speed up the adjustments in labor markets or prevent asset bubbles, and attempts to so do may create more instability, not less,” Plosser said.
