Federal Reserve Member, Brainard
Deputy Governor said US Federal Liel Brainard, during a press address on Monday that tighter US monetary policy is beginning to emerge in an economy that may be slowing faster than expected, adding that the brunt of the Fed rate hike will not be clear for months.
Brainard explained that production has slowed more so far this year than expected, indicating that policy tightening is having some impact in sectors such as housing that are directly affected by borrowing costs for mortgages.
And the US Fed member added that in some other sectors, the delay in influencing interest decisions means that policy actions so far will have their full impact on activity in the coming quarters, and the impact on price setting may take longer, and that with all major central banks heading in the same direction. Towards raising interest rates to fight inflation, moderation in demand should be further promoted.
At the same time, Brainard expected that the recovery in the second half will be limited, that real growth will be basically flat this year, and that uncertainty remains high, adding that monetary policy will remain constrained for some time to ensure that inflation returns to the target over time, and that given the lack of With increasing global economic and financial certainty, moving forward deliberately and in a data-driven way will enable us to learn how to adjust economic activity, employment, and inflation.
It is worth noting that the US Federal Reserve Bank of Chicago member Charles Evans said earlier on Monday that the Fed needs to deal cautiously and wisely with its tightening monetary policy to take a reasonable course.
