Fed's Brainard: Appropriate to Wait for a Rate Hike Until Developments Provide Greater Confidence
Fed's Governor Lael Brainard said that she wants to see more data before a rate hike and that she still sees slack in the labour market.
Comments come after an unexpected slowed down in job creation reported Friday. US nonfarm payrolls showed economy created 38,000 jobs in May, its weakest since September 2010.
Speaking at the Council on Foreign Relations, Brainard also said that it is better to wait on greater certainty regarding the EU referendum for the UK and whether they will leave the EU.
“I want to emphasize that monetary policy is data dependent and is not on a preset course. In this regard, I look forward to hearing the deliberations of the Committee. Recognizing the data we have on hand for the second quarter is quite mixed and still limited, and there is important near-term uncertainty, there would appear to be an advantage to waiting until developments provide greater confidence. Prudent risk-management would suggest the risks from waiting until the totality of the data provides greater confidence in a rebound in domestic activity, and there is greater certainty regarding the "Brexit" vote, seem lower than the risks associated with moving ahead of these developments,” said Brainard.