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Brainard Predicts Economic Growth to Continue as Fed Ends Support

Lael Brainard, a Federal Reserve governor nominated by President Biden to be the central bank’s new vice chair, told senators in a confirmation hearing that she expected the job market to see continued gains and for inflation to start easing as the Fed withdraws its support.

Today, we see an economy that’s grown about 5.5 percent over the last year, and we’ve seen those broad unemployment numbers coming down really quickly, so there’s a lot of underlying momentum in the economy. And so, you know, as we go forward on our plans to end asset purchases to begin to raise interest rates at some time beyond that to shrinking the balance sheet, I think we’ll do it in a well-communicated way, a transparent way to allow markets to react in a measured way to it. And you know, I believe we’ll be able to see inflation coming back down to target while the employment picture continues to clear. There are some short-term constraints there that I think are limiting people from coming back into the labor market. As those are lifted, I think we’ll have continued gains on employment.

U.S. & Politics

Brainard Predicts Economic Growth to Continue as Fed Ends Support

By C-SPAN January 13, 2022

Lael Brainard, a Federal Reserve governor nominated by President Biden to be the central bank’s new vice chair, told senators in a confirmation hearing that she expected the job market to see continued gains and for inflation to start easing as the Fed withdraws its support.

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