Top 92 Quotes & Sayings by Jerome Powell - Page 2

Bailouts may have been more tolerable in the early 1990s when they were rare and their use for a failing bank was uncertain. That is no longer the case.

We understand that America's prosperity is bound up with the prosperity of other nations, including emerging market nations.

Our discussions of the economy may sometimes ring in the ears of the public with more certainty than is appropriate.

Community banks are a crucial part of our economy and the fabric of our society.

My colleagues on the Board of Governors and I understand the value of having a diverse financial system that includes a large and vibrant contingent of community banks.

Businesses and households react to lower rates by investing and spending more. Lower rates also support the prices of housing and financial assets such as stocks and bonds.

The Congress has tasked the Federal Reserve with achieving stable prices and maximum employment - the dual mandate.

It is quite plausible that the process of increased fragmentation of production across borders is subject to 'diminishing returns' and has its natural limits.

The too-big-to-fail reform project is massive in scope. In my view, it holds real promise. But the project will take years to complete. Success is not assured.

An efficient payments system provides the infrastructure needed to transfer money in low-cost and convenient ways. Efficient systems are innovative in improving the quality of services in response to changing technology and changing demand.

The financial crisis involved significant failures in the functioning, regulation, and supervision of OTC derivatives markets.

The longer workers are unemployed, the greater the likelihood that their skills will erode and workers will lose attachment to the labor force, permanently damaging the economy's dynamism and potential output.

AIG's failure revealed systemic problems in the OTC derivatives market that went well beyond the failure of a single market participant.

Higher asset prices increase wealth and, with a lag, induce higher spending.

In a world of global trade and integrated capital markets, it is natural for economic and financial shocks and policy actions to be transmitted across borders.

Over the longer run, advanced economy policy actions that strengthen global growth and global trade will benefit the EMEs as well.

The Federal Reserve places great importance on our relations with the Bundesbank. Few such relationships have been as important, over the decades, in promoting financial stability and prosperity around the world.

Although I have never worked in a community bank, I have been a customer, and I know from personal experience the special skills that these institutions bring to their customers.

Perhaps the greatest challenge for the resolution of a systemic global bank is the possibility that public or private actors in different countries might take local actions that would cause the overall resolution to spin out of control.

Real short- and long-term rates were relatively high in the late-1990s, so financial excess can also arise without a low-rate environment.

My own experience is that the best outcomes are reached when opposing viewpoints are clearly and strongly presented before decisions are made.

All economic forecasts are subject to considerable uncertainty. There is always a wide range of plausible outcomes for important economic variables, including the federal funds rate.

Over time, low rates can put pressure on the business models of financial institutions.

To ensure financial stability, we expect the provision of U.S. government securities settlement services to be robust in nearly all contingencies.

Emerging market economies have long grappled with the challenges posed by large and volatile cross-border capital flows.

By purchasing and holding large amounts of Treasury securities and MBS, we put additional downward pressure on term premiums and so on long-term rates.

Given that trade benefited the Asian economies on the way up, it seems natural that the slowdown in global trade, whatever its causes, could lead to some loss of dynamism and growth in the region.

The Federal Reserve and other central banks have adopted broad public policy objectives to guide the development and oversight of the payments system. At the Fed, we have identified efficiency and safety as our most fundamental objectives, as set forth in our Policy on Payment System Risk.

The FOMC has considerable control over short-term interest rates. We have much less influence over long-term rates, which are set in the marketplace.

Central banking often comes across as obscure and complicated, and we try to help the public understand what we do.

It is worth noting that 'too big to fail' is not simply about size. A big institution is 'too big' when there is an expectation that government will do whatever it takes to rescue that institution from failure, thus bestowing an effective risk premium subsidy. Reforms to end 'too big to fail' must address the causes of this expectation.

Increased fragmentation of production across international borders - a natural outgrowth of the gains from specialization - meant more trade for any given value of final production, thus adding to the major expansion in gross trade flows in the 1990s and 2000s.