Fed: Brainard stuck to her well versed dovish script – Deutsche Bank

Research Team at Deutsche Bank, suggests that the Fed’s Brainard made her view pretty clear and stuck to her well versed dovish script.

Key Quotes

“The Fed Governor said that ‘in the presence of uncertainty and the absence of accelerating inflationary pressures, it would be unwise for policy to foreclose on the possibility of making further gains in the labour market’ and so ‘to the extent that the effect on inflation of further gradual tightening in labour market conditions is likely to be moderate and gradual, the case to tighten policy pre-emptively is less compelling’.

She also added that asymmetry in risk management in today’s new normal ‘counsels prudence in the removal of policy accommodation’. In the Q&A the question was asked if she would dissent at a hike in September but she sidestepped this. Overall it was pretty clear from the speech that there was little change in her uber dovish views.”