Lael Brainard's 'New Normal' as a Fed Blueprint

The transcript discusses Governor Brainard's dissenting message to the FOMC, highlighting her concerns about raising rates too quickly. It explores the division within the Fed, with some members advocating for rate hikes while others, like Brainard, caution against it due to low inflation and employment considerations. The impact of quantitative easing (QE) in Europe and Japan is also discussed, along with potential policy changes and their effects on long-term rates. The conversation concludes with a discussion on future economic outlooks, inflation, and real rates of return on bonds.

What message was Governor Brainard trying to convey to her peers regarding rate increases?

What implications does the speech have for future monetary policy decisions?

How does the speech reflect the division of views within the Federal Reserve?

In what ways does the speaker suggest that the Phillips Curve may not be functioning as expected?

What are the potential consequences if the FOMC adopts a more aggressive stance on rate increases?