- Fed's Governor Brainard: Policy may have to remain accommodative to get to 2% inflation
Market news
21 February 2020
Fed's Governor Brainard: Policy may have to remain accommodative to get to 2% inflation
- Says there is a risk inflation expectations have slipped
- Countercyclical capital buffer good for imbalances
- Proposes yield tools if rates at lower bound
- Says nonmonetary tools needed to temper financial cycle
- Lower bound may constrain policy rate more frequently
- Robust countercyclical fiscal policy is vital
- Rate caps would transmit additional accommodation
- Yield curve caps would augment credibility
- Prefers flexible inflation averaging to achieve Fed's 2% inflation goal
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