Monetary policy cannot solve all the ills of the economy and while further actions could be beneficial, the Fed must be "realistic" about the costs, Federal Reserve Bank of Cleveland President Sandra Pianalto said Monday.

"Monetary policy should do what it can to support the recovery, but there are limits to what monetary policy can accomplish," Pianalto told a luncheon in Ohio, according to prepared text, released by the Fed. "Monetary policy cannot directly control the unemployment rate. It can only foster conditions in financial markets that are conducive to growth and a lower unemployment rate."

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