Fed’s Jefferson: Core Inflation Progress Discouraging
The Federal Reserve’s latest assessment of core inflation progress is discouraging, according to Governor Lael Brainard. Governor Brainard, who is a voting member of the Federal Open Market Committee (FOMC), made the remarks during a speech at the Peterson Institute for International Economics in Washington, D.C.
The Fed’s Assessment of Core Inflation
The Fed’s assessment of core inflation is based on the Personal Consumption Expenditures (PCE) price index, which is the central bank’s preferred measure of inflation. The PCE price index is a measure of the average change in prices of goods and services purchased by households.
The Fed’s assessment of core inflation is that it has been running below the central bank’s 2% target for some time. In April, the PCE price index was 1.6%, which is below the Fed’s target.
Brainard’s Remarks on Core Inflation
In her speech, Governor Brainard noted that the Fed’s assessment of core inflation progress is discouraging. She noted that the central bank’s 2% target has not been met for some time and that the current level of inflation is below the Fed’s target.
Brainard also noted that the Fed is closely monitoring inflation and that it is prepared to take action if necessary. She noted that the central bank is prepared to use its tools to ensure that inflation remains at its target level.
The Fed’s Tools for Managing Inflation
The Fed has several tools at its disposal for managing inflation. These tools include adjusting the federal funds rate, which is the interest rate at which banks lend to each other overnight. The Fed can also adjust its balance sheet by buying and selling securities.
The Fed can also use its communication tools to influence inflation expectations. The central bank can communicate its views on inflation and its plans for managing inflation through speeches, press releases, and other forms of communication.
Brainard’s Views on Inflation
Brainard noted that the Fed is committed to achieving its 2% inflation target and that it is prepared to use its tools to ensure that inflation remains at its target level. She also noted that the central bank is closely monitoring inflation and that it is prepared to take action if necessary.
Brainard also noted that the Fed is committed to maintaining price stability and that it is important for the central bank to ensure that inflation remains at its target level. She noted that the central bank is prepared to use its tools to ensure that inflation remains at its target level.
Conclusion
The Federal Reserve’s assessment of core inflation progress is discouraging, according to Governor Lael Brainard. Brainard noted that the central bank’s 2% target has not been met for some time and that the current level of inflation is below the Fed’s target. The Fed has several tools at its disposal for managing inflation, including adjusting the federal funds rate and adjusting its balance sheet. Brainard noted that the Fed is committed to achieving its 2% inflation target and that it is prepared to use its tools to ensure that inflation remains at its target level.