Brainard comments at a speech in Washington

  • Fiscal policy among many sources of uncertainty
  • May hike rates faster if fiscal policy shrinks slack fast
  • Fiscal stimulus could put upward pressure on US dollar
  • Balance sheet reinvestment could also end sooner
  • Sees risks abroad tilted lower, especially in emerging markets, China
  • Sees risks from low inflation in Japan and Europe

Brainard is a dove but she acknowledges here that the Fed make have to hike faster if fiscal spending ramps up.