We take the level of the stock market into account when we consider the economic outlook and monetary policy. But let me be clear: We do not target a particular level of equity prices.
We attempt simply to judge the likely influence of the stock market as well as other important factors on the level of aggregate demand and aggregate supply and, hence, on the economy’s ability to achieve price stability and maximum sustainable employment. In this respect, the stock market plays the same role in our analysis as does any other influence on our outlook.