Fed's Brainard: Gradual rate hikes remain appropriate in 'near term'

Author: Adam Button | Category: Central Banks

Brainard at the Peterson Institute in Washington, DC

  • Policy increasingly dependent on how outlook evolves
  • Some tailwinds fading, including cooler global growth
  • Financial conditions have tightened in recent months
  • US economic momentum strong, as shown by labor market
  • Job gains well above level that absorbs new entrants
  • Wages picked up over past year, inflation encouraging
  • Good reasons to expect solid US growth in 2019
  • Fading fiscal stimulus likely in 2020
What's the 'near term'? I guess it's tough to finesse the message of saying you're going to hike in December but probably wait afterwards. On net, I think this still sounds that message but maybe not as loud as the market would like.
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