The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary policy action to further upward pressure on inflation.
BEN BERNANKEIndeed, in general, healthy investment returns cannot be sustained in a weak economy, and of course it is difficult to save for retirement or other goals without the income from a job.
More Ben Bernanke Quotes
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…the Federal Reserve has the capacity to operate in domestic money markets to maintain interest rates at a level consistent with our economic goals
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It must be awfully frustrating to get a small raise at work and then have it all eaten by a higher cost of commuting.
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Investment banks manage to go bankrupt through their investment-banking activities, commercial banks manage to go bankrupt through their commercial-banking activities.
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A money-financed tax cut is essentially equivalent to Milton Friedman’s famous ‘helicopter drop’ of money.
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I am confident that we will meet whatever challenges the future may bring.
BEN BERNANKE -
It takes about two and a half percent growth just to keep unemployment stable.
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The amount of currency in circulation is not changing. The money supply is not changing in any significant way.
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I don’t think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.
BEN BERNANKE -
While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.
BEN BERNANKE -
We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.
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Achieving price stability is not only important in itself, it is also central to attaining the Federal Reserve’s other mandate objectives of maximum sustainable employment and moderate long-term interest rates.
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The more guidance a central bank can provide the public about how policy is likely to evolve the greater the chance that market participants will make appropriate inferences.
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Developments in financial markets can have broad economic effects felt by many outside the markets.
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I am very proud of my nerd-dom.
BEN BERNANKE -
So it’s important, as it affects overall levels of production and employment in the U.S. There are many domestic industries doing well in the United States, notwithstanding a strong dollar.
BEN BERNANKE