Federal Reserve: Restoring Price Stability in an Uncertain Economic Environment

The speech on October 10, 2022 by the Federal Reserve’s Vice Chair Lael Brainard at the 64th National Association for Economic Annual Meeting in Chicago, Illinois touched upon inflation, the lingering effects caused by the pandemic and Russia’s war against Ukraine, global supply chains, and the yield curve. Vice Chair Brainard pointed out that while the Fed has tightened policy strongly to bring down inflation, the U.S. tightening is being amplified by concurrent foreign tightening; and that the increase in interest rates is proving affective in tempering demand to bring it into better alignment with supply, which is still constrained. While the transmission of tighter policy is most evident in highly interest-sensitive sectors like housing, policy actions to date will have their full effect on activity in the coming quarters.

Source:    https://www.federalreserve.gov/newsevents/speech/brainard20221010a.htm