For example, US Federal Reserve Chairman Ben Bernanke wrote that changes in asset prices should affect monetary policy only to the extent that they affect the central bank’s forecast of inflation.
After all, central banks are not likely to have informational advantage over the market in assessing to what extent asset price movements are due to fundamentals and to what extent they are following what is called a “pathological path.” Moreover, central bank stabilization of asset prices can generate moral hazard problems; that is, the implicit “safety net” created by the central bank could provide an incentive for greater risk-taking in pursuit of returns.