Fed Governor Brainard:
- Financial conditions have improved in recent weeks
- Reasons to expect oil and US dollar to eventually stabilize
- Inflation should move higher if oil stabilizes
- US labor market showing continued strength
- China growth slippage having important global effect
- Need 'prudent' policy change amid week foreign demand
- Most prominent risks are to the downside
I take these comments as a small shift to a more hawkish side from Brainard. She's proven to be perhaps the biggest dove at the core of the FOMC but she's leaving the door open to inflation. That's a start.