5/11, 6:24 PM (Source: TeleTrader)
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Fed's Brainard: Price increases are related to transitory inflation

Federal Reserve Governor Lael Brainard stated on Tuesday that remaining patient through the short period of increased prices during transitory inflation will help ensure progress is not curtailed by premature tightening of financial conditions. However, should the inflation turn out to be less transitory, the Fed has tools to softly guide it back to the target levels.

In general, Brainard described the economic outlook as bright, despite being far from the goals set. The second quarter of 2021 is expected to come stronger than the first. She pointed out that as the recovery gains momentum, it is important to continue to focus on full employment and inflation outcomes.

According to the Fed official, April's job report that significantly missed estimates is a reminder that real figures may diverge from projections, the recovery will likely be uneven and difficult to predict.

Breaking the News / LH