As soon as Jerome Powell was nominated to be the next Chair of the Federal Reserve, markets around the world reacted with mixed feelings.
While investors were relieved that someone with a solid reputation and extensive experience in economics would be taking over from Janet Yellen, some are concerned about how much Powell will change the current stance on interest rates and inflation.
In order to get a better sense of where Powell stands on key economic issues, let’s take a look at some of his most notable Jerome Powell Quotes.
Most Famous Jerome Powell Quotes
1. In the long run, and even in the medium run, you wouldn’t want to bet against the American economy.
2. The financial crisis revealed important weaknesses in many areas of our financial system.
3 . The main long-run contribution monetary policy can make is to provide a stable macroeconomic and financial environment.
4. We live in a world defined by the rapid pace of technological change.
5. This economy will recover. And that means people will go back to work. Unemployment will get back down.
6. The Federal Reserve is committed to fulfilling our statutory mandate of stable prices and maximum employment.
7. Our obligation is to use our tools to support the economy, and that’s what we’ll continue to do.
8. More regulation is not the best answer to every problem.
9. I think men and women should make the same for the same work, by and large.
10. Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery.
Jerome Powell Quotes on Banks
11. As with so many sectors of the economy, technology is transforming the retail banking sector.
12. After the last financial crisis, the banks more than doubled their capital and liquidity and they’re far more aware and better at managing the risks they’re taking.
13. No single housing finance institution should be too big to fail.
14. We need a system that provides mortgage credit in good times and bad to a broad range of creditworthy borrowers.
15. The banking industry has traditionally been characterized by physical branches, privileged access to financial data, and distinct expertise in analyzing such data.
16. A digital currency issued by a central bank would be a global target for cyberattacks, cyber counterfeiting, and cyber theft.
Jerome Powell Quotes on the U.S. Economy
17. We were in a good place in February of 2020, and we think we can get back there, I would say, much sooner than we had feared.
18. The United States is the world’s reserve currency. The dollar is the world’s reserve currency. And we have the ability to borrow at low rates. We have the ability to service that debt.
19. There is no risk-free path for monetary policy.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.
20. Longer and deeper recessions tend to leave behind damage to people’s careers. And that weighs on the economy going forward.
Jerome Powell Quotes on Inflation
21. We have lowered interest rates to near zero in order to bring down borrowing costs. We have also committed to keeping rates at this low level until we are confident that the economy has weathered the storm. -Jerome Powell
22. If inflation were to move up in ways that are unwelcome, we have the tools for that, and we will use them. No one should doubt that.
23. When the time comes to raise interest rates, we’ll certainly do that, and that time, by the way, is no time soon.
23. The expectation of gradual policy normalization should reduce the likelihood of outsized movements in interest rates.