Customer Quote by Jerome Powell
“Real short- and long-term rates were relatively high in the late-1990s, so financial excess can also arise without a low-rate environment.”
About This Quote
Source Speech: Remarks on Monetary Policy, Federal Reserve, 1999
High rates can coexist with financial excess, showing risk isn’t only low‑rate driven.
In simple terms: High rates don’t prevent financial bubbles.
Key Takeaway
Watch for excess even when rates are high.
Themes
economics
finance
risk
monetary policy
Mood
cautious
analytical
Type
policy
economic
When to use this quote
- banking sector
- investment decisions
- policy analysis
Key Concepts
interest rates
financial excess
macro risk
Questions to Reflect On
- How can policymakers detect excess in a high‑rate environment?
- What indicators reveal hidden risk?
A Different Perspective
High rates may mask underlying vulnerabilities.
