Asset Quote by Jerome Powell
“Higher asset prices increase wealth and, with a lag, induce higher spending.”
About This Quote
Source Speech: Economic commentary, 2023
Higher asset prices eventually lead to increased wealth, which later spurs higher consumer spending
In simple terms: Rising asset values can boost spending after a delay
Watch for lagged effects on spending trends
Themes
Mood
Type
When to use this quote
- Investment decisions
- policy planning
- personal finance
Key Concepts
Questions to Reflect On
- How do asset bubbles affect this relationship?
- What factors could break the wealth‑spending link?
Spending may not rise if confidence is low