Fed’s Brainard Sees Rapid Balance Sheet Runoff, Rise to Neutral

Fed’s Brainard Sees Rapid Balance Sheet Runoff, Rise to Neutral
Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge, Mass., on March 1, 2017. Brian Snyder/Reuters
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Federal Reserve Governor Lael Brainard on Tuesday said she expects methodical interest rate increases and rapid reductions to the Fed’s balance sheet to bring U.S. monetary policy to a “more neutral position” later this year, with further tightening to follow as needed.

“I think we can all absolutely agree inflation is too high and bringing inflation down is of paramount importance,” Brainard said at a conference at the Minneapolis Fed.