In addition, creating risk-based FHA insurance premiums that match insurance premiums with borrowers' credit profiles would give more households access to refinancing options. The risk of moral hazard must be considered in designing government-backed programs; such programs should not bail out failed investors, as doing so would only encourage excessive risk-taking.
Central banks should also play their part, acting within the scope of their mandates and making sure they "stick to their lane". The Bundesbank and the Eurosystem are aware of this responsibility. And we are acting accordingly, supporting the fight against climate change without overstretching our mandate. Our primary objective is to maintain price stability.