Assets Quote by Janet Yellen
“My bottom line is that monetary policy should react to rising prices for houses or other assets only insofar as they affect the central bank's goal variables - output, employment, and inflation.”
About This Quote
Source Speech: Monetary Policy Remarks, US Treasury, 2023
Central banks should adjust rates mainly when asset price spikes affect core economic goals.
In simple terms: Policy reacts to asset price impacts on economy.
Focus on output, employment, inflation.
Themes
Mood
Type
When to use this quote
- budget planning
- investment decisions
Key Concepts
Questions to Reflect On
- Should housing bubbles dictate policy?
- What other indicators matter?
Asset price focus may ignore other risks.