Fed vice president candidate Lael Brainard, speaking at a hearing before the Senate Banking Committee on Thursday, said the Fed would be in a position to start raising interest rates as soon as its bond buying program had ended ( in March). As we move to end bond purchases, raise interest rates and lower the balance sheet, he added, we will do so in a transparent manner.
On the economy, Brainard said there is a lot of underlying momentum and that he believes we will see inflation return to 2.0% as the employment outlook clears. I am very concerned about inflation, “she added,” emphasizing the Fed’s commitment to the 2.0% target, saying that inflation would likely remain high for the first two quarters. However, we must all take projections with great caution, he added.
Market reaction
There has been no notable market reaction to his remarks, which, on policy, have so far been largely as expected.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
