Economist Tim Duy has a post up on the speech from Federal Reserve governor Brainard on Monday
Posts of the headlines from her speech are here:
- Fed's Brainard: Near-term inflation outlook risks tilted to downside
- More from Fed's Brainard: 'We've been observing lack of demand over last few years'
Duy's post is a long one, with lots of nuanced argument, but the gist is...
Governor Lael Brainard dropped a policy bomb with her speech ... It was nothing short of a direct challenge to Chair Janet Yellen and Vice Chair Stanley Fischer.
If you're interested in the question of the Federal Reserve raising rates it is must read.
No joke.
Duy's bottom line:
Evans and Kocherlakota are no longer the lunatic fringe. This could be a real game changer that shifts the Fed toward the Evans view of the world, with no rate hike until mid-2016. Brainard muddied further the already murky December waters.
