Last quote by Lael Brainard
Lael Brainard quotes
The response of inflation to unexpected strength in demand will likely be modest and gradual, requiring a correspondingly moderate policy response.
To reconcile these developments, it is difficult not to conclude that the current level of the federal funds rate is less accommodative today than it would have been 10 years ago.
Foreign consumption and investment are weak, while foreign demand for savings is high, along with an elevated demand for safe assets.
Perhaps most salient for monetary policy, it appears increasingly clear that the neutral rate of interest remains considerably and persistently lower than it was before the crisis.
I believe this approach has served us well in recent months, helping to support continued gains in employment and progress on inflation.
Disinflation pressure and weak demand from abroad will likely weigh on the U.S. outlook for some time, and fragility in global markets could again pose risks here at home.
The institution is designed to ensure independence from the executive branch.
I believe that this approach has served us well.
The feedback loop through exchange rate and financial market channels appears to be elevated. Several factors suggest that the appropriate path to return monetary policy to a neutral stance could turn out to be quite shallow.
The fragility of the global economic environment is unlikely to resolve any time soon. Growth in the advanced economies remains dependent on extraordinary unconventional monetary policy accommodation, while conventional policy continues to be constrained by the zero lower bound.