Miscellaneous Quotes for Week to 10.20.2017

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Janet Yellen, Fed Chair at the G30 summit 

US growing moderately 

“Economic activity in the United States has been growing moderately so far this year, and the labor market has continued to strengthen…

Hurricanes to have modest long-term effect

“While the effects of the hurricanes on the U.S. economy are quite noticeable in the short term, history suggests that the longer-term effects will be modest and that aggregate economic activity will recover quickly…The hurricanes will likely result in some hit to GDP growth in the third quarter but a rebound thereafter, and smoothing through those movements, I’m expecting growth that continues to exceed potential in the second half of the year.”

Soft Inflation

“Inflation readings over the past several months have been surprisingly soft, however, and the 12-month change in core PCE prices has fallen to 1.3 percent….this year’s low inflation could reflect something more persistent than is reflected in our baseline projections. ”

 

Office of National statistics. UK

UK inflation at record high

“The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month rate was 2.8% in September 2017, up from 2.7% in August 2017….All else being equal, the depreciation of sterling seen in 2016 and particularly following the outcome of the EU referendum would increase the prices producers pay for imported goods….The inflation rate for a range of goods has, however, picked up since the start of the year and the overall rate in the UK is higher than in most other EU countries, including all of the larger western European nations.”

 

Mark Carney, Bank of England Governor on CNBC

It´s an adjustment period

“Its a period of adjustment, and we have been willing to tolerate inflation being an over the target, where in a relatively rare economy with having inflation higher than target among the major central banks, we are tolerating inflation being over target for longer in order to crowd in unemployment during a time of big adjustment in the uk economy.”

The world economy is growing

“The big picture here right now is the global economy is firing on most cylinders. We have 75% of the world economy growing above potential. The quality of that growth has gone up.”

 

Mario Draghi, ECB President via CNBC

On cryptocurrencies

“With anything that’s new, people have great expectations and also great uncertainty. Right now we think that especially as far as bitcoins and cryptocurrencies are concerned, we don’t think the technology is mature for our consideration… One of the lessons of the great financial crisis is that financial innovation, in this case it’s financial and technology innovation… should be embraced with lots of attention to its potential risks”

 

Steve Mnuchin, Treasury Secretary via Fortune

On Tax reform

“There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done…To the extent we get the tax deal done, the stock market will go up higher. But there’s no question in my mind that if we don’t get it done, you’re going to see a reversal of a significant amount of these gains.”