Brainard Q&A highlights
She's mentioned Japan twice and she Europe as well. She's in the camp, I believe, that the US's future will look a lot like the past 20 years in Japan if they're not careful.
- Potential growth has consistently been lower than anticipated
- Labor force participation among prime working age workers has dropped more than anticipated
- If we fully understood why prime age workers are dropping out, it would give us more confidence in forecasts
- We're 1.5 percentage points below the pre-crisis participation level among prime aged workers
- "Wage inflation is really very subdued"
- Job openings may be measured inaccurately
- Weak productivity numbers are 'stark'
- One reason investment held back was rise in USD
- Underwriting standards in commercial real estate have risen
- Wants to see stronger economic growth, looking for signs of rising inflation
The odds of a Fed hike have fallen to 22% from 26% after Brainard.
The Q&A is now over, she never relented from her dovish lines.
