Quotes About Interest rates

Efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment. As a result, I believe a macro-prudential approach to supervision and regulation needs to play the primary role.

Logically, it may be argued that banks could indeed lower interest rates and make up their profits through larger borrowing volumes. But banks, in turn, could justify exorbitant rates by arguing that they cater to a riskier segment.

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

You want 21 percent risk free? Pay off your credit cards.

We should, as a country, be very concerned about our borrowing cost.

The older you are when you buy an annuity, the shorter your life expectancy will be - so the greater a monthly paycheck the same sum of money will buy you. When interest rates are higher, the size of the paycheck for the same sum of money will rise also.

Profits in business always depend on the rate of interest: the higher the interest, the higher the rate of profit required.

way. I monitor the action by following the TLT, the iShares 20+ Year Treasury Bond ETF. This security goes down when interest rates go up, and vice versa. When the TLT goes down, you can expect the stock index futures to go down soon after

firms do not borrow as much to invest when rates are higher and individuals stop buying durable goods against credit and, instead, turn to save. Lower demand growth leads to a better match between demand and supply, and thus lower inflation for the goods being produced.

It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sump payment for a future cash flow.

Cheap money feels like the most natural thing in the world - if you don't think about why it's so cheap.

Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates.

The Fed has the ability to put money out, it's got the ability to take money back in, and if they don't do that, we will have hyperinflation worse than we had in 1980 and 1981.

When money is free, the rational lender will keep on lending until there is no one else to lend to.

Such high interest rates are prohibitive for long-term projects; at 20% per annum, the amount owed doubles in less than four years. With such a crushing future burden, no rational businessman or corporation borrows to fund a project that will not become profitable for five or ten years, as is the case with most large commercial undertakings.

With all this consumer debt, business debt, government debt, smaller movements in interest rates have a magnified effect. a small movement can tip the boat.

Despite Russia's move to raise interest rates this week, the value of the ruble has continued to crash. Russia's economy is so bad, Edward Snowden had to put government secrets on Craigslist.

The government can indefinitely control both short-term and long-term interest rates.

The government must do all it can to help reduce interest rates for business.

The fact that equities are being sold down, despite the lowest interest rates in recent history, simply means that the market doesn't see growth ahead for -very many businesses.

After Augustus' death, the Emperor Tiberius hoarded money, with the result that interest rates rose above the legal limit and a banking crisis erupted in AD 33. Tiberius then decided to lend out the imperial treasure free of interest to patrician families, which brought about an immediate decline in interest rates and an end to the crisis.55 His actions constituted the world's first experience of quantitative easing.fn9

The Fed should make a clear commitment to stable money to reduce the swings in interest rates and inflation. Instead, it champions and flaunts unstable money. This encourages momentum trading and the growth of derivatives. Meanwhile, layers of financial regulation make Washington bigger and more powerful but don't fix the underlying problems.

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.

The Federal Reserve system obviously doesn't work anymore - they keep lowering the federal discount rate, and all that happens is that the banks are making a fortune, and the old folks' CDs are getting chewed up.