Justin Wolfers, CNN: "I think the simple view is you can't do two things at the same time. And to try to reduce financial stress would be a force for lower interest rates while trying to reduce inflation would lead to higher interest rates. On the other hand, and this is actually my belief when you have two tools, you can do two things at the same time. And that's what the Fed has. It can fix the question of financial stability by providing liquidity to the financial system. Open huge lines of credit, and make sure there's lots of money in the vaults of small and medium-sized regional banks. And at the same time, it can raise interest rates because there it's trying to rein in spending by saying businesses opening new offices and factories. So with two tools, you can do two things, and I think that's what we're going to see."
