Economics
Brainard Says Recent Bond Market Moves Have ‘Caught’ Her Eye
- Fed governor cites improving outlook while noting risks remain
- Says economy remains far from Fed’s goals for inflation, jobs
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Federal Reserve Governor Lael Brainard said it will take “some time” to meet the conditions for economic progress laid out by the U.S. central bank for reducing the pace of its massive asset purchases, while noting recent bond market volatility could cause further delay.
“I am paying close attention to market developments,” she said Tuesday in response to a question after giving a speech. “Some of those moves last week, and the speed of the moves, caught my eye,” she said, adding that she would be concerned if she saw disorderly conditions, or persistent tightening in financial conditions, that could stall out the economy’s gains toward maximum employment and sustained 2% inflation.