Fed's Brainard Preaches 'Prudence' in Tightening Policy

Lael Brainard emphasizes the need for continued prudence in economic policy, highlighting progress towards the Federal Reserve's inflation goals and the persistence of low neutral interest rates. She maintains a dovish stance, arguing against preemptive tightening and focusing on downside risks. Brainard notes progress in the economy, particularly in the stabilization of oil and the US dollar, and stresses the importance of not hindering labor market gains as the economy moves towards full employment.

What does Lael Brainard suggest about the current state of neutral interest rates?

• They are likely to increase significantly.

• They are expected to remain low.

• They will fluctuate unpredictably.

• They are irrelevant to current policy.

How does Lael Brainard view the idea of preemptive policy tightening?

• She thinks it should be the primary focus.

• She believes it is less compelling than addressing downside risks.

• She finds it highly compelling.

• She is undecided on the matter.

What is Lael Brainard's position within the committee?

• She is not part of the committee.

• She is a dovish member.

• She is a neutral member.

• She is a hawkish member.

What progress does Brainard acknowledge in the labor market?

• The labor market is declining.

• Progress is being made towards full employment.

• There is no progress in the labor market.

• Full employment has been achieved.

What is Brainard's view on rate hikes in relation to the labor market?

• She thinks rate hikes are irrelevant to the labor market.

• She believes rate hikes should be delayed to avoid harming the labor market.

• She is in favor of reducing rates.

• She supports immediate rate hikes.