Fed’s Brainard: Monetary policy will need to be restrictive for some time
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Fed Vice Chair Lael Brainard reiterated on Wednesday that the Fed’s policy rate will need to rise further and that they will need to keep the policy restrictive ‘for some time,’ as reported by Reuters.
“Our resolve is firm, goals clear, tools up to the task.”
“We need several months of low monthly inflation readings to be confident inflation is moving down to 2%.”
“Higher policy rate, balance sheet reduction should help bring demand into alignment with supply.”
“Especially important to guard against rise in inflation expectations.”
“Labor demand continues to exhibit considerable strength, hard to reconcile with more downbeat tone of activity.”
“May take some time for full effect of tighter financial conditions to work through economy.”
“At some point in tightening cycle, risks will become more two-sided.”
The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.25% on the day at 109.97.
[/s2If]
Join Our Telegram Group
