Search ForexCrunch

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.