Asset prices are the key channel through which monetary policy is transmitted to the real economy. Moreover, because asset prices embody the expectations of forward-looking investors, they might contain information of value for the policy-setting process. But from the Federal Reserve's perspective, asset prices must ultimately be seen through the lens of long-term growth and price stability.
But I believe that, if we approach this challenge in the right way, it can also be a moment of opportunity. We have a unique possibility to respond to a changing and challenging world by investing in our future, strengthening our common institutions and empowering the world’s second largest economy.