Lawrence Kudlow Quotes

The Federal Reserve is incapable of accomplishing its stated objectives.

Clear communication is always important in central banking, but it can be especially important when economic conditions call for further policy stimulus but the policy rate is already at its effective lower bound.

The nation can't count on the Fed when the Fed can't count.

The best way that a central bank can support growth on a durable basis is to ensure inflation is low, stable - there is financial stability - and that is the role that the central bank plays.

The Fed's ability to raise and lower short-term interest rates is its primary control over the economy.

The Fed is the major U.S. firefighter. It's not the Treasury. It's not the Congress. We certainly saw that vividly in 2008.

All the Federal Reserve can do is make loans against collateral.

Monetary policy itself cannot sensibly be directed at reducing imbalances.

Of course I've already taken a very modest position on the monetary system, I do take the position that we should just end the Fed.

Every central banker in the world pays attention to credit growth, but not in the U.S.

Bernanke and company are trying to reflate the economy with almost stated objective of inflation at 2 percent and higher in order to provide some type of safety margin for a future recession. That's where they want to go.

Well, I think as long as people are talking about stimulus, I think the Fed will be thinking about cutting rates because monetary policy is the better way to go because you can turn it on and turn it off.

It's true that the Federal Reserve faces a lot of political pressure and is unpopular in many circles.

I never liked quantitative easing. It's misunderstood by almost everybody. Flattening the yield curve is not stimulative; flattening the yield curve is anti-stimulative.

Of course, looking tough on inflation is part of any central banker's job description: if investors believe that inflation is going to get out of control, you end up with higher interest rates and capital flight, and a vicious circle quickly ensues.

I think the Fed is not designed to have effective tools to deal with the economy. It should settle for just controlling the money supply. And - if it insists, it can worry about inflation.

To me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.

The very existence the Federal Reserve System is a safeguard against anything like a calamity growing out of money rates …. We have the power to deal with such an emergency instantly by flooding the street with money.

For the first time the committee [Federal Reserve] was using communication — mere words — as its primary monetary policy tool.

Monetary policy is like juggling six balls... it is not 'interest rate up, interest rate down.' There is the exchange rate, there are long term yields, there are short term yields, there is credit growth.

The government will always tell you that it wants low inflation. The real issue is the horizon over which to bring inflation down.

The role of monetary policy is to smooth out business cycles by promoting steady inflation and healthy labor markets, but modern central bankers have taken an activist turn.

The Fed is the greatest hedge fund in history.

A snarky but accurate description of monetary policy over the past five years is that the Federal Reserve successfully replaced the technology bubble with a housing bubble

The Federal Reserve, like other central banks, wields powerful tools; democratic accountability requires that the public be able to see how and for what purposes those tools are being used.