He says there is a debate over whether bubbles should be avoided by monetary policy or by regulatory policy, but that avoiding bubbles will be important for the Fed going forward. Greenspan always claimed bursting asset bubbles was not the job of the Fed, so it looks as though the job description may be shifting.
Stocks are recovering off their lows, helping lift both EUR/JPY and USD/JPY in the last half-hour. EUR/JPY trades at 137.50 from 136.80 lows.
