As the United States hurtles yet again toward a deadline by which either its debt ceiling is raised or it defaults on its financial obligations, Biden administration officials and Congressional lawmakers took to the Sunday talk shows on May 14 to voice their positions and sway public opinion. It’s a financial game of chicken, with…

Federal Reserve Vice Chair Lael Brainard will step down from her position and serve as President Joe Biden’s top economist, the White House said on Tuesday. Brainard will serve as the new head of the National Economic Council (NEC), succeeding Brian Deese, who recently announced his resignation. President Biden also named long-time associate Jared Bernstein…

The Federal Reserve will likely soon slow its interest rates hikes, Fed Vice Chair Lael Brainard signaled on Monday, as the U.S. central bank tries to figure out how high borrowing costs need to go and how long they should stay there to bring down inflation. “I think it will probably be appropriate soon to…

In the Federal Reserve’s quest to fight inflation, the central bank could overtighten and create more risks for the U.S. economy, warned Vice Chair Lael Brainard. Speaking at the Clearing House and Bank Policy Institute 2022 Annual Conference in New York on Wednesday, Brainard explained that the institution is committed to reining in the 40-year…

In the Federal Reserve’s quest to fight inflation, the central bank could overtighten and create more risks for the U.S. economy, Fed Vice Chair Lael Brainard has warned. Brainard said the institution is committed to reining in the near-40-year-high inflation that is hurting millions of low-income Americans, she said at the Clearing House and Bank Policy…

U.S. central bankers are split on whether high inflation will be a recurring problem in the future requiring repeated rate hikes, comments from two officials showed on Tuesday, a stark contrast to their broad consensus on the current policy path. Separate remarks from Federal Reserve Governor Lael Brainard and Richmond Fed President Thomas Barkin on…

Federal Reserve Governor Lael Brainard on Tuesday said she expects methodical interest rate increases and rapid reductions to the Fed’s balance sheet to bring U.S. monetary policy to a “more neutral position” later this year, with further tightening to follow as needed. “I think we can all absolutely agree inflation is too high and bringing…

The Federal Reserve plans to shrink the balance sheet by $95 billion a minute, minutes from the March Federal Open Market Committee (FOMC) policy meeting revealed (pdf). Minutes released on Wednesday show that Committee members “generally agreed” on a cap of $60 billion in Treasurys and $35 billion in mortgage-backed securities that would be cut…

The Federal Reserve plans to shrink the balance sheet by $95 billion a month, minutes from the March Federal Open Market Committee (FOMC) policy meeting revealed (pdf). Minutes released on Wednesday show that Committee members “generally agreed” on a cap of $60 billion in Treasury securities and $35 billion in mortgage-backed securities that would be…

Federal Reserve Board Governor Lael Brainard on Friday laid out a case for the role a U.S. central bank digital currency could play in bolstering financial stability as the use of stablecoins and cryptocurrency grows and other countries issue their own CBDCs. “It is essential that policymakers, including the Federal Reserve, plan for the future…