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Fed's Brainard: It seems likely that US rates will remain low in the future

While delivering her prepared remarks at 'Policy Summit 2019: Connecting People and Places to Opportunity, Federal Reserve Bank of Cleveland,' in Cincinnati, Ohio, Fed Governor Lael Brainard said that it seemed likely that the rates in the U.S. will remain low in the future. "Basic risk management principles argue for softening expected rate path when risks shift to the downside," Brainard explained.

The US Dollar Index inched lower on these remarks and was last down 0.15% on the day at 96.48. Below are some key takeaways as reported by Reuters.

"Recent weeks have brought important downside risks for u.S. Economy, including policy uncertainty."

"Recent U.S. inflation indicators have been disappointing, making it important to sustain momentum."

"Most likely path for the U.S. economy remains solid."

"Downside risks could weigh on U.S. economic activity."

"Low inflation expectations can create a self-fulfilling dynamic."

"Data suggests U.S. consumer spending robust, consumer confidence high."

"Financial conditions remain supportive."

"It is better to address financial market imbalances using regulation than through rates."

"There is some skepticism about alternative inflation targeting approaches."

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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