Inflation & Prices
Fed’s Brainard Says String Of Supply Shocks Keeps Inflation Risks High
- Fed vice chair updates presentation given at June BIS event
- Brainard says vital to keep inflation expectations anchored
Lael Brainard
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Vice Chair Lael Brainard said US central bankers must lean against the risk of inflation expectations rising above the 2% target in a world where inflation may be less stable than in recent decades.
“In the presence of a protracted series of supply shocks and high inflation, it is important for monetary policy to take a risk-management posture to avoid the risk of inflation expectations drifting above target,” Brainard said in remarks released Monday.