The Governor of the Federal Reserve, Lael Brainard, He noted on Tuesday that there are some signs of stretched asset valuations, but added that they are not broad-based, as Reuters reported. Brainard also added that he expects a temporary rise in inflation above 2%.
“The Fed sticks to its mandate, but that maximum employment mandate has important implications for social equity.”
“We are paying more attention to market valuations, the speed of the changes in the bond markets last week caught my attention.”
“The criterion that inflation should moderately exceed the Fed’s target for some time is really important in assessing when an interest rate hike might be appropriate.”