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Lael Brainard, Governor at the Federal Reserve and a permanent voting member, has said that trade uncertainty has been a major factor weighing on the economy in the past year. Interviewed by CNBC’s Steve Leisman, the central banker added that business contacts have been telling her that they are on the sidelines and prefer to wait before investing.

Brainard has stated that additional tariffs in December would serve as a realization of downside risks. However, consumer-facing businesses have been upbeat.

Regarding interest rates, she prefers waiting for a “little bit” before proceeding with decisions. Brainarad has reaffirmed the Fed’s stance that a material change in the economic assessment is needed for a change in interest rates.