Lael Brainard is a Federal Reserve Governor and as such is a voting member of the FOMC

Speaking on the Lower Neutral Rate and its Implications for Monetary Policy at the Stanford Institute for Economic Policy Research Associates Meeting

  • Says need gradual, cautious approach to policy adjustment
  • Once interest rate rises start, must assess effects on economic and financial conditions
  • Neutral interest rate is likely to remain low for some time
  • Weak growth abroad pushes up on dollar, down on neutral interest rate
  • Delayed liftoff, shallower rate hike path needed to offset impact of stronger dollar on US jobs
  • Spillover from abroad limits Fed's ability to raise rates as other central banks do not
  • Lower US potential economic growth also pushes down on neutral interest rate
  • Decline in measures of inflation expectations warrants close monitoring

Headlines via Reuters

More to come