As the Fed increases rates aggressively, Brainard makes a case for caution

We will be able to learn how economic activity, employment, and inflation are responding to cumulative tightening by moving forward deliberately.

she said, which will inform our assessments of the direction of the policy rate.

She made the remarks on Monday at the annual meeting of the National Association for Business Economics in Chicago.

For a while, she stated, "monetary policy would be restrained to ensure that inflation comes back to goal over time."

When US central bankers meet on November 1-2, it appears that they will be prepared to raise interest rates for a fourth consecutive time by 75 basis points in an effort to slow the economy and reduce inflation.

According to Brainard, central banks throughout the world are tightening at the same time, and lower demand elsewhere can reappear in the US.


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Two Fed officials argue against more interest rate increases.