Fed's Brainard: Outlook is bright but we are far from our goals

"The latest jobs report is a reminder that realized outcomes can diverge from projections and underscores the value of patience," Federal Reserve Governor Lael Brainard said on Tuesday, as reported by Reuters.

Additional takeaways

"Outlook is bright but we are far from our goals."

"As the recovery gains momentum, it's important to remain patiently focused on maximum employment and inflation outcomes in our guidance."

"Limited period of pandemic-related price increases is unlikely to durably change inflation dynamics."

"Will remain attentive to risk that inflationary pressures could prove persistent."

"Should inflation prove less transitory than thought, we have tools to gently guide inflation back to our target and no one should doubt our commitment to do so."

"Remaining patient through transitory inflation surge will help ensure progress is not curtailed by premature tightening of financial conditions."

"Risks remain from vaccine hesitancy, variants, resurgence abroad."

"Recovery likely to be uneven, difficult to predict."

"Basing monetary policy on outcomes rather than outlook will serve us well."

"Some of this year’s tailwinds likely to become next year’s headwinds."

"Good reason to expect strong employment rebound."

"Virus-related impediments, lack of childcare are keeping people from returning to work."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.23% on the day at 90.06.