Economics
Fed's Brainard Sees Solid Economy, Backs Big Strategy Change
- Outlines new approach to targeting inflation over long term
- Supports capping Treasury yields if rates go back to zero
This article is for subscribers only.
Federal Reserve Governor Lael Brainard painted a mostly positive picture of the near-term outlook for the U.S. economy while advocating longer-term changes in the conduct of monetary policy in an era of low interest rates and subdued inflation.
“There are good reasons to expect the economy to grow at a pace modestly above potential over the next year or so, supported by strong consumers and a healthy job market, despite persistent uncertainty about trade conflict and disappointing foreign growth,” Brainard said in a speech Tuesday to the New York Association for Business Economics.