Federal Reserve Governor Lael Brainard said Thursday that interest rates need to remain high, even though there are signs inflation is starting to ease.
Echoing recent comments from her fellow policymakers, Brainard insisted that the Fed won’t waiver in its commitment to taming prices that have come down some in recent months but remain near four-decade highs.
“Even with the recent moderation, inflation remains high, and policy will need to be sufficiently restrictive for some time to make sure inflation returns to 2% on a sustained basis,” she said in remarks prepared for a speech in Chicago.
Her comments come less than two weeks before the rate-setting Federal Open Market Committee holds its next meeting, on Jan. 31-Feb. 1. Markets are assigning a near-100% probability that the FOMC will raise its benchmark interest rate another quarter percentage point, taking it to a target range of 4.5%-4.75%, according to CME Group data.
Lael Brainard, vice chair of the US Federal Reserve, during…
Read the full article here
