Fed Vice President Lael Brainard reiterated on Wednesday that the Fed’s monetary policy rate will have to rise more and that they will have to maintain the restrictive policy “for some time”, as reported Reuters.
Other points to consider
“Our determination is firm, the objectives are clear and the tools are up to the task.”
“We need several months of low monthly inflation readings to be sure that inflation moves towards 2%.”
“Raising interest rates and shrinking the balance sheet should help align demand with supply.”
“Especially important to avoid rising inflation expectations.”
“Labor demand continues to show considerable strength, difficult to reconcile with a more unfavorable tone of activity.”
“It may take some time for the full effect of tightening financial conditions to be felt in the economy.”
“At some point in the tightening cycle, risks will become more two-way.”
market reaction
dollar index He showed no immediate reaction to these comments and was last seen losing 0.25% on the day at 109.97.
Source: Fx Street
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