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Bank Quote by Jerome Powell

“Bailouts may have been more tolerable in the early 1990s when they were rare and their use for a failing bank was uncertain. That is no longer the case.” quote by Jerome Powell
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“Bailouts may have been more tolerable in the early 1990s when they were rare and their use for a failing bank was uncertain. That is no longer the case.”

Jerome Powell

About This Quote

Source Speech: Monetary Policy Address, Jerome Powell, 2023

Early‑1990s bailouts were rare, making them more tolerable; now frequent bailouts are less acceptable.

In simple terms: Frequent bailouts erode tolerance.

Key Takeaway

Limit reliance on bailouts.

Themes

economics policy risk

Mood

analytical serious

Type

economic policy

When to use this quote

  • banking crises
  • public debt
  • regulatory reform

Key Concepts

financial stability government intervention

Questions to Reflect On

  • Should bailouts be a last resort?
  • What alternatives exist for failing banks?
A Different Perspective

Political pressure may force bailouts despite risks.

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