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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.” quote by Janet Yellen
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“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.”

Janet Yellen

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.

Key Takeaway

Focus on output, employment, inflation.

Themes

monetary policy inflation housing market

Mood

analytical cautious

Type

economic policy

When to use this quote

  • budget planning
  • investment decisions

Key Concepts

economic stability central banking

Questions to Reflect On

  • Should housing bubbles dictate policy?
  • What other indicators matter?
A Different Perspective

Asset price focus may ignore other risks.

4.3 out of 5 (9 ratings)

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