David Malpass Quotes

I’ve always been a little nervous about the Fed. Quite frankly, I’m a little nervous about the degree of their independence.

The Fed is totally open.

The amount of currency in circulation is not changing. The money supply is not changing in any significant way.

Monetary policy itself cannot sensibly be directed at reducing imbalances.

I think the Fed is not designed to have effective tools to deal with the economy. It should settle for just controlling the money supply. And - if it insists, it can worry about inflation.

There is always the potential for a central bank to engage in discretionary monetary policy and to break the one-to-one link between changes in foreign reserves and changes in the money supply.

Monetary stability is a cornerstone of the social contract.

Well, the chairman of Federal Reserve just made his move to rescue Barack Obama. We're gonna have QE3. We're gonna print some more money.

Monetary policy is like juggling six balls... it is not 'interest rate up, interest rate down.' There is the exchange rate, there are long term yields, there are short term yields, there is credit growth.

True enough, the Fed needs radical reforms. In particular, it needs to replace its failed forecasting models and be rid of the academics who overwhelm the Fed system.

The role of monetary policy is to smooth out business cycles by promoting steady inflation and healthy labor markets, but modern central bankers have taken an activist turn.

The Federal Reserve is incapable of accomplishing its stated objectives.

The Fed is the greatest hedge fund in history.

A snarky but accurate description of monetary policy over the past five years is that the Federal Reserve successfully replaced the technology bubble with a housing bubble

The goal of what Japan's central bank is doing is to create growth. If it actually creates growth, in the long run, it will lead to appreciation.

There is a European Central Bank, of course, established and it has the structure similar to the Federal Reserve system, not precisely the same but similar.

Since World War II, inflation - the apparently inexorable rise in the prices of goods and services - has been the bane of central bankers.

The Fed's ability to raise and lower short-term interest rates is its primary control over the economy.

The job of the Central Bank is to worry.

By the time I became chairman and there was more of a feeling of urgency, there was a willingness to accept more forceful measures to try to deal with the inflation.

A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if the civilization doesn't have rules that prevent it.

The Fed is the major U.S. firefighter. It's not the Treasury. It's not the Congress. We certainly saw that vividly in 2008.

All the Federal Reserve can do is make loans against collateral.

Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.

Low interest rates are a big opportunity for investment. But the issue is that this money should go to the real economy, not the financial economy.