Economics
Brainard Suggests Growth Tailwinds May Speed Fed Rate Hike Pace
- Global growth and fiscal stimulus now aligned to support U.S.
- Supp[orts continued gradual hikes to ensure rise in inflation
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Federal Reserve Governor Lael Brainard, one of the central bank’s most ardent doves, sounded optimistic about the U.S. economy’s outlook and suggested the pace of monetary policy tightening may need to accelerate.
“The macro environment today is the mirror image of the environment we confronted a couple of years ago,” Brainard said, according to the text of a speech she’ll deliver Tuesday in New York. “In the earlier period, strong headwinds sapped the momentum of the recovery and weighed down the path of policy. Today, with headwinds shifting to tailwinds, the reverse could hold true.”