Fed's Brainard: Gradual interest rate increases are likely to be appropriate

Author: Greg Michalowski | Category: Central Banks

Speaking in Detroit

Fed's Lael Brainard is speaking in Detroit:
  • gradual interest-rate increases are likely to be appropriate over the next year or 2
  • inflation data encouraging, little sign of breakout
  • trading causing uncertainty, growth abroad moderating
  • watching yield curve as signal on financial conditions
  • vulnerabilities building, leveraged lending rising
  • may have to raise rates above the long run fast estimates
  • Feds publish longer run neutral rate estimate, now at 2.9% is not relevant for great path
  • shorter run neutral rate is the relevant monetary policy benchmark
  • shorter run neutral rate likely to rise above long run estimate and next year or 2
  • economy is meeting threats inflation and employment goals
  • economic growth is strong

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