Fed's Brainard: Inflation is much too high & subject to upside risks but will move down by year end

Fed's Brainard: Inflation is much too high & subject to upside risks but will move down by year end

Fed's Brainard: Inflation is much too high & subject to upside risks but will move down by year end
  •  I am carefully monitoring rotation from demand for goods back to services and whether that occurs without sparking inflation
  •  Expects balance sheet to shrink significantly faster than the last cycle
  •  Most low wage workers have seen wage growth that exceeds avg inflation
  •  War and covid lockdowns in China likely to extend supply chain bottlenecks and hurt growth
  •  After policy is more neutral, extent of additional tightening depends on the evolving outlook
  •  Fed will tighten 'methodically' through a series of rate hikes

Another Fed Speaks Fed's Daly: We'll be able to get inflation moving down by year-end

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