- Fed prepared to take stronger action if warranted, she says
- ‘Inflation is much too high and is subject to upside risks’
Federal Reserve Governor Lael Brainard called the task of reducing inflation pressures “paramount” and said the central bank will raise interest rates steadily while starting balance sheet reduction as soon as next month.
The Federal Open Market Committee “will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” Brainard said Tuesday in a virtual speech to the Minneapolis Fed. Policy makers next meet May 3-4.
Craig Torres | Bloomberg