Famous Last Words

While re-reading some of Chairman Jerome Powell's March comments downplaying concerns about inflation I couldn't help but recall Ben Bernanke's 2007 comments about the subprime housing market.

Jerome Powell on Expected Inflation

“We do expect that inflation will move up over the course of this year...Our best view is that the effect on inflation will be neither particularly large nor persistent.” – Jerome Powell, March 2021

Ben Bernanke on Subprime Mortgages

[G]iven the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.  The vast majority of mortgages, including even subprime mortgages, continue to perform well. – Ben Bernanke, May 2007