Yet removal of accommodation could choke off the recovery just as it seems poised to gain at least a bit more momentum. Such a situation requires assessment of the extent of this risk and, of particular importance to my topic today, the appropriate role of monetary policy in containing it.
Protecting financial stability In presenting the mix of salient considerations in reacting to possible financial stability risks arising from extended periods of accommodative monetary policy, I should state at the outset something that will not likely come as a surprise to any of you.