Fed Vice Chairwoman Lael Brainard: "At some point in the tightening cycle, the risks will become more two-sided."
She says there will be a risk of tightening too much, and history also warns against stopping too soon. wsj.com
She says there will be a risk of tightening too much, and history also warns against stopping too soon. wsj.com
Brainard: "We are in this for as long as it takes to get inflation down."
"Monetary policy will need to be restrictive for some time to provide confidence that inflation is moving down to target."
"Monetary policy will need to be restrictive for some time to provide confidence that inflation is moving down to target."
Brainard's speech contains a number of reasons to expect inflation to come down: aggressive policy tightening and fiscal drag, higher markups that could reverse, and still-anchored expectations.
Brainard on the July drop in overall inflation and the softer core inflation reading: "While the moderation in monthly inflation is welcome, it will be necessary to see several months of low monthly inflation readings to be confident that inflation is moving back down to 2%."
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