Mr. Kelley discusses the “Millennium Bug” from a public sector perspective Remarks by Mr. Edward W. Kelley, Jr., a member of the Board of Governors of the US Federal Reserve System, before the Professional Banker’s Association, Washington, D.C. on 15/12/97. I am pleased to appear before the Professional Banker’s Association to discuss the Millennium Bug from a public sector perspective.
Second, the central bank should not target asset prices but should take asset prices into account in forecasting inflation and in assessing whether the economy is embarking on unsustainable debt accumulation. This requires central banks to pay particular attention to developments in the financial and credit markets and to look closely at firms’ and households’ balance sheets.