Fed's Brainard Says Economic Risks Are Tilted to Downside

The transcript discusses the economic recovery, highlighting improvements in employment and inflation trends. It notes the strong rebound in the housing sector and consumer spending, supported by low mortgage rates and fiscal measures. However, it warns of the ongoing uncertainty due to COVID-19, which poses risks to businesses and employment. The importance of fiscal support is emphasized to mitigate these risks. The transcript also outlines the need for a shift in monetary policy to accommodate future economic challenges, guided by new committee goals to achieve stable employment and inflation targets.

What challenges does the economy face due to COVID-19?

What changes are expected in monetary policy as the economy progresses?