Fed Vice Chair Brainard Talks on Bringing Inflation Down

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    Helmholtz Watson

    More Brainard:

    Tuesday, 12/04/2022 in an interview with the WSJ and says:

    Russia’s invasion of Ukraine driving topline inflation, especially energy
    Most focused-on core inflation for assessing the path of monetary policy
    Welcome to see moderation in core goods inflation
    I will be looking to see if we continue to see moderation in inflation in months ahead
    Labor market and economy overall has been very strong demand
    Getting inflation down our most important task
    Encouraging in last few months of employment reports is we are seeing a rebound in participation rate
    Room to run on participation rate
    I expect demand to moderate
    There will be spillover from slower growth abroad, less stimulus from fiscal side
    Recovery can be sustained even as we bring inflation down
    Fiscal support will be a substantial drag this year
    On supply side, we expect to see continued improvement in labor force participation
    Plenty of room for businesses to reduce number of job openings
    I don’t see Fed tightening policy as not being consistent with bringing inflation down and sustaining recovery
    Russia’s invasion is a risk to upside inflation, downside on economic activity
    The longer the war persists, the greater the potential the risks to upside on inflation, and downside on growth
    China’s zero Covid policy has potential to lengthen out supply chain constraints
    China is just another set of inflationary shock that is hitting the economy
    It is too early to have great confidence in what post pandemic, war new normal will be for US economy
    We need to see how economy evolves
    Fed is committed to bring inflation back to art 2% goal
    We are committed to keeping inflation expectations are anchored
    It will take more time than anybody would have thought for employment to go back to pre-Pandemic norms
    Reductions in balance sheet could come as soon at June after the decision made in May

    Helmholtz Watson

    Federal Reserve Vice Chair Lael Brainard gave a speech in New York titled “Bringing Inflation Down”. The markets got a small boost Wednesday when she
    [See the full post at: Fed Vice Chair Brainard Talks on Bringing Inflation Down]

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