Back in grad school (not all that long ago), we pondered whether a central bank should target equity (or other asset) prices to conduct monetary policy.
In theory, as the value of consumers’ stock portfolios rises, they will spend more, because they are wealthier. It turned out, though, that the empirical link among monetary policy, equity prices, and consumption has always been rather weak.
Nonetheless, Fed chairs tend to at least mention that they are paying attention to the stock market, even if they’re not willing to go as far as Alan Greenspan did with his infamous “irrational exuberance” comment.

No doubt economists will continue to debate this idea. But it seems as though many economists think that, somehow, the “science” on this point is settled. Indeed, they now assume that the Fed should not only watch the stock market, but move quickly to stamp out market volatility.