Fed Governor Lael Brainard warned against removing support for U.S. economy. Bobbi Rebell reports.
Fed’s Brainard puts breaks on rate hike
The latest outspoken Fed policymaker to chime in on the rate debate: Fed Governor and voting member Lael Brainard calming the markets on Monday by saying the Federal Reserve should avoid removing support for the U.S. economy too quickly.
Brainard added the U.S. still looks vulnerable to economic weakness abroad.
The takeaway? No rate hike likely at the next Fed meeting which concludes September 21st.
Bob Johnson of the American College of Financial Services:
(SOUNDBITE) BOB JOHNSON, PRESIDENT, AMERICAN COLLEGE OF FINANCIAL SERVICES, (ENGLISH) SAYING:
“She basically put the breaks on, I believe, put the breaks on the rate hike in the near-term. I really don’t believe there was going to be a rat hike anyway, but the markets got spooked.”
But policymakers will go into the meeting divided. Before Brainard’s speech, a host of Fed officials, including Boston Fed President and long-time dove Eric Rosengren, expressed more confidence about raising rates, leading to last week’s market drop.