Feds Lael Brainard speaks with Yahoo Finance
- Trade is a downside risk to the US economy
- We will be prepared to adjust policy to sustain growth
- Our job is to sustain the expansion
- International economy is a delicate place
- US economy is in the midst of a very lengthy expansion, with confident consumers
- There is no singe number for full employment
- Watching payroll closely but no signal from one month
- Economy is bring people back to the workforce.
- Interest rates are likely to be lower than what people are expected to in previous downturns. Have to be open minded about other policies
- She dow not see negative interest rates being a useful part of Fed's arsenal
- We have not hit 2% inflation on a sustainable basis.
- Fed is committed to the 2% sustained, symetrical inflation goal
- Fed must avoid slippage in inflation expectations
- she is concerned about policies whittling away at core resilience of banking system
- risky corporate borrowers have taken a lot of debt in this recovery
Brainard is a voting member on the Fed board. Her comments jive with those of Fed's Powell in that the Fed is prepared to act to sustain growth. When is the tipping point? She is tilting....
