Economics

Fed’s Brainard Says Time to Pivot to Providing Accommodation

  • Says downside risks predominate, uncertainty is a ‘thick fog’
  • Bullard sees potential for uneployment to fall ‘dramatically’
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Federal Reserve Governor Lael Brainard, painting a dark picture of the U.S. economic outlook amid a resurgence of virus infections, said the central bank should pivot its forward guidance and asset purchases toward providing longer-run accommodation.

“A thick fog of uncertainty still surrounds us, and downside risks predominate,” Brainard said in remarks Tuesday to a virtual event hosted by the National Association for Business Economics.