Federal Reserve chief Lael Brainard called the work of reducing inflationary pressures “of paramount importance” and said the central bank would steadily raise interest rates and begin shrinking its balance sheet as early as next month. Bloomberg.
The Fed’s monetary policy committee “will continue to tighten monetary policy in a methodical manner through a series of interest rate hikes and starting to cut the balance sheet rapidly, even from the May meeting,” Brainard told Minneapolis. Fed.
“Given the fact that the recovery is significantly stronger and faster than the previous cycle, I expect the balance sheet to shrink significantly faster than in the previous recovery,” he added.
The next meeting of the Federal Reserve is on May 3-4.
The US Federal Reserve cut its asset purchases last month and raised interest rates by 25 basis points, and expects to raise at least six more interest rates by the end of the year to curb higher inflation in 40 years.
Source: Capital
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