Tags: federal reserve | brainard | data | growth outlook

Fed's Brainard: Weak Data Raise Doubts About Growth Outlook

Tuesday, 02 Jun 2015 10:12 AM

Federal Reserve Governor Lael Brainard said a recent run of weak data casts doubt on the strength of the economy, in a speech that suggested she’s open to a delay in the Fed’s timetable for a rate increase this year.

“There is value to watchful waiting while additional data help clarify the economy’s underlying momentum,” Brainard said at the Center for Strategic and International Studies in Washington.

“If continued labor market strengthening is confirmed and inflation readings continue to improve, liftoff could come before the end of the year.”

Fed policy makers are watching data on consumer spending, inflation and the labor market as they assess whether the economy is strong enough to raise rates from near-zero for the first time since 2008.

A first-quarter contraction and weakness in consumer spending are prompting some officials to reassess their views on economic momentum.

“The string of soft data in the first quarter raises some questions about the contours of the outlook,” Brainard said.

“It would be difficult, based on the data available today, to dismiss the possibility of a more significant drag on the economy than anticipated from foreign crosscurrents and the negative effects of the oil price decline, along with a more cautious U.S. consumer.”


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Federal Reserve Governor Lael Brainard said a recent run of weak data casts doubt on the strength of the economy, in a speech that suggested she's open to a delay in the Fed's timetable for a rate increase this year.
federal reserve, brainard, data, growth outlook
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2015-12-02
Tuesday, 02 Jun 2015 10:12 AM
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