More comments on the US economic and monetary policy from Fed’s Board of Governor Lael Brainard is coming through:
- It is clear that potential that the US economic growth rate is lower than before.
- Says she does not want to prejudge what kind of rate moves would be appropriate late in the year.
Prior comments:
- Rising economy risks argue for softer Fed rate path;
- policy goal now is to preserve progress made on maximum employment, target inflation;
- best way to safeguard gains is to navigate cautiously on rates;
- downside risks to output, employment argue for softer rate path even if economic outlook stays the same;
- demand appears to have softened against backdrop of greater downside risks;
- ‘prudence counsels a period of watchful waiting,’ especially with no signs of inflation pickup;
- economy might warrant a softening in Fed’s policy path;
- with balance sheet normalization well advanced, should wind down redemptions later this year;
- would not want to cut rates and shrink balance sheet at the same time;
- inflation trends may be below the committee’s objective;
- we should be equally attentive to the risk of downside erosion in inflation expectations;
- trade disputes, Brexit, u.S. Government debt ceiling among risks to forecast;
- closely watching labor market indicators, including February payrolls…
This will be the last of Fed speakers for the Board of Governor before Fed’s Chairman Powell on Friday which wraps-up communications with the public before the blackout period commencing at the end of the week.
About Lael Brainard
Lael Brainard took office as a member of the Board of Governors of the Federal Reserve System on June 16, 2014, to fill an unexpired term ending January 31, 2026 took office as a member of the Board of Governors of the Federal Reserve System on June 16, 2014, to fill an unexpired term ending January 31, 2026.
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