"Growth could be lower than projected due to a protracted period of stagnation in the Euro area, and risks of a longer slowdown in Emerging markets have increased. The eventual exit from low rates and unconventional monetary policy in advanced economies could pose challenges for emerging economies, especially if it proceeds too fast or is not well communicated."
"Central banks will need to strike the right balance between the risks of exiting prematurely and the risksassociated with delaying exit further. The longer the current accommodative conditions persist,the bigger the exit challenges become."
"There is a general presumption that we can wait indefinitely and make judgments on when we're going to move. I'm not sure the market will allow us to do that. But if the Fed moves too quickly in reining in its accommodative policies, it could shock the market, which is already dealing with a very large element of uncertainty. I'm not sure the markets will allow an easy exit. Gradual is adequate, but we've got to get moving."
"Bond prices have got to fall. Long-term rates have got to rise. The problem, which is going to confront us, is we haven't a clue as to how rapidly that's going to happen. And we must be prepared for a much more rapid rise than is now contemplated in the general economic outlook."We're still well below the interest rate level we normally ought to be at this stage. The consequence of that is that when the bond market begins to move we may not be able to control it as well as we'd like to. And that has a lot of ramifications with respect to all sorts of markets."