A Quote by Jerome Powell

The expectation of gradual policy normalization should reduce the likelihood of outsized movements in interest rates. — © Jerome Powell
The expectation of gradual policy normalization should reduce the likelihood of outsized movements in interest rates.
The degree of monetary policy ease should be associated with the level of real interest rates, not nominal interest rates.
One factor that favors easier adjustment in EMEs is that U.S. monetary policy normalization has been and should continue to be gradual, as long as the U.S. economy evolves roughly as expected.
Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.
Here's the interesting thing: the fact that QE and lowering interest rates almost to zero has worsened inequality, does not mean that raising interest rates will help reduce inequality.
With interest rates artificially low, consumers reduce savings in favor of consumption, and entrepreneurs increase their rates of investment spending.
If we are going to have a Fed, it should not fall into the tyranny of experts with the a fatal conceit that a few wise people can determine interest rates. Interest rates should be driven by the market, and people's time preference, and we see these boom-bust cycles.
Government should eschew suasion and directives to banks on interest rates that run counter to monetary policy actions.
Of course I welcome all the normalization of monetary policy. I think monetary policy should be normal.
Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.
The government must do all it can to help reduce interest rates for business.
The economy may be complex, but Americans understand that the Wall Street banks control an outsized portion of the economy and that they have an outsized interest in their own profits.
The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the three-month interest rate, but on other interest rates as well.
However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rates below the zero lower bound.
When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward.
Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.
And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms.
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