Yet, recent market disruptions in the United States make it very clear that the financial markets, the general public and political authorities will look first and foremost to the Federal Reserve to respond to any significant threats to financial stability. In this context, it may be useful to take a closer look at a central bank’s mandate for financial stability.
From any of three aspects -- the economy, prices, and financial conditions -- it is obvious that the Bank should maintain the current yield curve and thereby make the most of the improvement in the global economy, with a view to achieving the price stability target of 2 percent at the earliest possible time. I would like to add one thing on this point.