WASHINGTON, March 6 (Reuters) - Monetary policy is too "crude" of a tool to address possible asset-price bubbles in particular financial markets or corners of the economy, a top Federal Reserve official said on Thursday.
"I don't think that monetary policy, which is fairly crude, is the best instrument for addressing asset bubbles that appear in a particular financial instrument or a particular sector of the economy," Atlanta Fed President Dennis Lockhart said in an interview with Reuters.
The debate is growing over whether the Fed should stand ready to raise interest rates to head off any financial instabilities that might grow from all of its accommodative policies, with Fed Chair Janet Yellen saying she wouldn't rule it out as a last resort.
But Lockhart said: "It's probably a little bit too much of a blunt instrument for that."
(Reporting by Jonathan Spicer; Editing by Paul Simao)