“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.”

We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.

It is not the responsibility of the Federal Bank – nor would it be appropriate – to protect lenders and investors from the consequences of their decisions

The amount of currency in circulation is not changing. The money supply is not changing in any significant way.

If Wall Street crashes, does Main Street follow? Not necessarily.

In fact, the world needs more nerds.

Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.

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

If I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term price stability as monetary policy’s greatest contribution to general economic prosperity and maximum employment.

If you are asking me if I would advocate that the Chinese go to greater flexibility in their exchange rate, I certainly would.

I don’t fully understand movements in the gold price.

Under a cold turkey strategy, at each policy meeting the Federal Open Market Committee would make its best guess about where it ultimately wants the funds rate to be and would move to that rate in a single step.

A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily.

…the Federal Reserve has the capacity to operate in domestic money markets to maintain interest rates at a level consistent with our economic goals

How much would you pay to avoid a second Depression?

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

House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.

If you pay people not to work and tax them when they do, don’t be surprised if you get unemployment.

Every economist knows that minimum wages either do nothing or cause inflation and unemployment. That’s not a statement, it’s a definition.

Nothing is so dangerous as that of violence employed by well-meaning people for beneficial objects.

When we are young, we are slavishly employed in procuring something whereby we may live comfortably when we grow old; and when we are old, we perceive it is too late to live as we proposed.

Workmen’s compensation, hours and conditions of labor are cold consolations, if there be no employment.

97% of the people who quit too soon are employed by the 3% who never gave up.

And there is no trade or employment but the young man following it may become a hero.

To stop war by the perfection of engines of destruction alone, might consume centuries and centuries. Other means must be employed to hasten the end.