Federal Reserve Governor Lael Brainard has just released a post-crisis monetary policy manifesto aimed at defusing any urgency to raise interest rates. For this month at least, the Federal Open Market Committee might agree.
Since June, the debate between camps on the FOMC has sharpened. On the one hand, there’s a majority group who want to move up rates gradually, based on their forecast of rising inflation and diminishing labor market slack. Positioned against that camp is a group of “other participants,” according to minutes of the Fed’s meeting in July, who see little evidence that inflation was responding to a tighter job market.