Quotes About Interest rates

When the central bank lowers interest rates below what they would have reached on the market, it sets in motion a series of responses by investors and consumers that will prove to be incompatible.

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

Thus, increases in interest rates matter greatly for the economy as a whole. They not only cause direct reductions in investment spending and interest-sensitive consumption spending (the main intent of restrictive monetary policy), but they also may reduce aggregate demand indirectly through their impact on asset prices.

Countries that have strong pre-crisis macroeconomic metrics, rich natural resources and export-based industries have stronger recovery prospects. Strong budgets allow the government to stimulate the economy with less debt burden. Exports play a significant role in supporting a stable interest rate and ex-change rates thus renewing investors confidence and recovery.

Emerging markets often get in trouble when the Fed hikes interest rates rapidly, or the price of exported commodities falls sharply—or both.

Did I realize at the time how high interest rates might go before we could claim success? No. From today's vantage point, was there a better path? Not to my knowledge—not then or now.

Baker delivered a message: "The president is ordering you not to raise interest rates before the election." I was stunned. Not only was the president clearly overstepping his authority by giving an order to the Fed, but also it was disconcerting because I wasn't planning tighter monetary policy at the time.