Board of Governors of the Federal Reserve Lael Brainard speaking
- Financial asset valuations stretched, cyclical pressures building
- Asset prices may be particularly vulnerable to outside economic shock
- Risks to US financial system 'moderate' though Fed monitoring effects of fiscal stimulus
- May need to raise banks capital buffer if cyclical pressures build, vulnerabilities grow
- Fed monitoring 'extreme volatility' of cryptocurrencies; could raise investor-protection issues
Headlines via Reuters
Brainard attuned to the risks facing the economy and markets, and warning of such. And on crytos also.
On the economy and policy - B has been towards the more dovish end of the FOMC spectrum (as a governor, she gets a vote on FOMC decisions) but her response to incoming data and developments (eg fiscal boost) has swayed her (and others) to less dovish/more hawkish.
There will be a Q&A to come
more to come
