There are some contrasting comments from Fed officials today.

Fed Governor Lael Brainard said that “with fiscal stimulus in the pipeline and financial conditions supportive of growth, the shorter-run neutral interest rate is likely to move up somewhat further, and it may well surpass the longer-run equilibrium rate for some period.” And to her, gradual interest rate hikes are likely to be appropriate.

On the other hand, St. Louis Fed President James Bullard emphasized that “you can’t just say, ‘unemployment is 3.9 percent, obviously we have to raise rates’; or, ‘growth is fast, obviously we have to raise rates.'” He noted that “I don’t think that feedback to inflation is very strong to be able to make that argument.”

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