The drama at the Fed continues to unfold after another high-ranking official, Governor Lael Brainard, expressed comments suggesting the US economy was still too vulnerable for a rate hike. At this point, the governing body seems divided about the health of the economy, which seems odd given their self-proclaimed ‘data dependency’. Either the data is indicating a growing economy or a shrinking one. Lack of consensus suggests a division in leadership and a delay in any rate hike at least until the end of the year.
Brainard spoke yesterday at the Chicago Council on Global Affairs, stating:
Today’s new normal counsels prudence in the removal of policy accommodation,’ and that the lack of full strength of the labor market makes ‘the case to tighten policy preemptively less compelling.’
This post was published at Schiffgold on SEPTEMBER 14, 2016.
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