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.