WASHINGTON, (Reuters) – While the Federal Reserve does not target equity markets to combat inflation, Esther George of Kansas City Fed said that it is one of the areas where tighter monetary policies will have an impact.

George stated that “what we want is the transmission our policy through markets understanding tightening should to be expected”. He spoke this after a day of stock market declines due to weak profits by major retailers. It isn’t aimed at equity markets specifically, but it is an avenue through which tighter financial circumstances could emerge.