Fed Governor Lael Brainard told CNBC that “our monetary policy forward guidance is premised on outcomes not the outlook” Hence, “it is going to be some time before both employment and inflation have achieved the kinds of outcomes that are in that forward guidance.”
She acknowledged that the latest economic forecast is “considerably better outcomes both on growth as well as on employment and inflation.” But she reiterated, “that’s an outlook. We’re going to have to actually see that in the data. When you look at the data, we are still far from our maximum employment goal.”
Brainard also said it’s “really important to recognize” the rise in inflation is “transitory”. “And following those transitory pressures associated with reopening, it’s more likely that the entrenched dynamics that we’ve seen for well over a decade will take over.”
