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Fed's Brainard Q&A: Return from financial crisis is always slow

Brainard Q&A highlights

She's mentioned Japan twice and she Europe as well. She's in the camp, I believe, that the US's future will look a lot like the past 20 years in Japan if they're not careful.

  • Potential growth has consistently been lower than anticipated
  • Labor force participation among prime working age workers has dropped more than anticipated
  • If we fully understood why prime age workers are dropping out, it would give us more confidence in forecasts
  • We're 1.5 percentage points below the pre-crisis participation level among prime aged workers
  • "Wage inflation is really very subdued"
  • Job openings may be measured inaccurately
  • Weak productivity numbers are 'stark'
  • One reason investment held back was rise in USD
  • Underwriting standards in commercial real estate have risen
  • Wants to see stronger economic growth, looking for signs of rising inflation

The odds of a Fed hike have fallen to 22% from 26% after Brainard.

The Q&A is now over, she never relented from her dovish lines.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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