Central Banks
Brainard Offers Case for Caution as Fed Hikes Rates Aggressively
- Fed vice chair says uncertainty high, watching global risks
- Says Fed policy will have to be restrictive for some time
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Federal Reserve Vice Chair Lael Brainard laid out a case for exercising caution as the central bank raises interest rates to curb high inflation, noting that previous increases are still working through the economy in a time of high global and financial uncertainty.
“Moving forward deliberately and in a data-dependent manner will enable us to learn how economic activity, employment, and inflation are adjusting to cumulative tightening in order to inform our assessments of the path of the policy rate,” she told the annual meeting of the National Association for Business Economics in Chicago on Monday.