Federal Reserve Board of Governors member Lael Brainard
Normally towards the dovish end of the spectrum
- Gradual u.s. rate hikes likely appropriate
- Greater confidence inflation will rise to 2-pct target
- Encouraged by 'substantial' fiscal stimulus, full employment, above-trend growth
- Persistently low inflation raises risk that underlying prices have softened
- Would welcome 'mild temporary' overshoot of inflation target
- Falling unemployment raises risk of financial imbalances; unclear how much labor slack remains
- Wages remain somewhat below pre-crisis levels
- 'Headwinds shifting to tailwinds,' but ready to slow or quicken rate hikes if forecasts wrong
- Encouraged by global growth, foreign demand, higher oil prices, softer dollar
- Stocks 'elevated'; corp bond spreads 'quite compressed'; yet overall risks moderate
Headlines taken from the text of her speech, comes via Reuters
A slightly less dovish set of comments from LB than I'd normally expect.