The Federal Reserve will need to roll out new efforts 'in coming months' to help the economy overcome the impact of the coronavirus pandemic and live up to the U.S. central bank's new promise of stronger job growth and higher inflation, Fed Governor Lael Brainard said on Tuesday.
- The Federal Reserve will need to roll out new efforts “in coming months” to help the economy overcome the impact of the coronavirus pandemic and live up to the U.S. central bank’s new promise of stronger job growth and higher inflation, Fed Governor Lael Brainard said on Tuesday.
Brainard, among the architects of the new long-term strategy the central bank adopted last week, is the first Fed official to tie that new approach directly to the need for further monetary stimulus, likely in the form of more aggressive bond-buying or more ambitious promises about returning the country to low unemployment.
Some analysts have argued the Fed’s new “framework” is incomplete without more details on what it intends to do to implement it, and Brainard suggested that needs to be addressed, particularly given the risks that high unemployment may last longer than expected and small businesses begin to fail in the absence of additional government pandemic-related support.
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