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Asset Quote by Jerome Powell

“Higher asset prices increase wealth and, with a lag, induce higher spending.” quote by Jerome Powell
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“Higher asset prices increase wealth and, with a lag, induce higher spending.”

Jerome Powell

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

Key Takeaway

Watch for lagged effects on spending trends

Themes

economics wealth spending

Mood

analytical cautious

Type

economic financial

When to use this quote

  • Investment decisions
  • policy planning
  • personal finance

Key Concepts

Wealth effect asset price dynamics consumer behavior

Questions to Reflect On

  • How do asset bubbles affect this relationship?
  • What factors could break the wealth‑spending link?
A Different Perspective

Spending may not rise if confidence is low

4.1 out of 5 (8 ratings)

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