Monetary Tightening Quotes

The history of interest rates is really the history of inflation. When inflation is high, interest rates are high, and when inflation is low, interest rates are low.

An important instrument of economic policy-making in a market economy is credible, consistent, and timely communication.

Poland is one of the few countries that can afford to conduct a conventional monetary policy and that means we have to act against the buildup of imbalances in the economy.

A higher IOER rate encourages banks to raise the interest rates they charge, putting upward pressure on market interest rates regardless of the level of reserves in the banking sector. While adjusting the IOER rate is an effective way to move market interest rates when reserves are plentiful, federal funds have generally traded below this rate.

I will be the first to say that it is always difficult to get monetary policy just right. But the Fed's analytical prowess is top-notch, and our forecasting record is second to none.

That means following a very restrictive fiscal and monetary policy which will squeeze the monopolies and cut their subsidies. On the micro level we will allow other economic agents, both domestic and foreign, to compete with them.

I studied what happened in the bond and the stock markets during previous periods when the Fed stopped manipulating the bond market. In every single case, the moment the Fed announced that there would be a cessation of intervention, stocks declined and interest rates went up.

And turns out, it's not Republicans throwing granny off a cliff... It's the Fed!?

Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker.

The monetary policy committee could either keep rates constant, increase them, or bring them down. There are three options possible compared to when it is accommodative.

The Federal Reserve's job is to take away the punch bowl just when the party gets going.

The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings.

The harsh truth is that if the policy isn’t hurting it isn’t working. I know there is a difficult period ahead but the important thing is that we cannot and must not fudge the determination to stop inflation in its tracks.

If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth.

My gracious, here I am the new chairman ... and I haven't the faintest idea of how you control the money supply. Yet everyone thinks I have it at my fingertips.

The proper governmental policy in a depression is strict laissez-faire, including stringent budget slashing, and coupled perhaps with positive encouragement for credit contraction.

The expectation of gradual policy normalization should reduce the likelihood of outsized movements in interest rates.

The reason inflation was brought down to manageable levels, by the time of Ronald Reagan's re-election, was directly attributable to Jimmy Carter's very courageous act, hiring a Federal Reserve chair, with the charge to induce a recession. That recession was probably the reason he didn't win a second term.

We believe that the Federal Reserve has to carry on with a progressive increase in interest rates as a consequence of the American economy.

Once an economy reaches a certain level of acceleration... the Fed is no longer with you... The Fed, instead of trying to get the economy moving, reverts to acting like the central bankers they are and starts worrying about inflation and things getting too hot.

At the end of the day, it's not a normal condition to have interest rates at zero.

It's appropriate for the Fed to gradually and cautiously increase our overnight interest rate over time.

If we were to raise interest rates too steeply, and we were to trigger a downturn or contribute to a downturn, we have limited scope for responding, and it is an important reason for caution.

Of course I welcome all the normalization of monetary policy. I think monetary policy should be normal.

Difficult economic conditions require us to face difficult economic choices.