Comments from Fed Governor Brainard:

  • US slowdown may be more significant than expected, says period of "watchful waiting" appropriate before raising rates
  • Rate rise, when it comes, will be gradual
  • Economy presenting a mixed picture, can't dismiss possibility of a more significant drag
  • benefits from low oil prices may be more than offset by impact of high dollar and drag on oil industry
  • Weak consumer spending also a worry, could continue to drag on the economy
  • Effect on US exports from weak foreign demand and a strong dollar could persist for some time
  • Even with headwinds, recent data indicate US inflation is firming
  • Wants more evidence inflation will rise to target and more evidence of healing in labor market before hiking

These are the first real comments on monetary policy since Brainard was appointed and they're quite dovish.