Former Fed Vice Chair Supports Hawkish Rate Cuts, Targeting Inflation Down to 2%

On December 9, the Federal Reserve is set to hold an FOMC rate-setting meeting. Former Fed Vice Chair Lael Brainard stated in an interview that if she were participating in this rate decision, she might opt for a hawkish rate cut. Brainard mentioned that in the absence of official data, she would refer to employment data from non-government sources such as ADP and RevelioLabs (both of which indicate a decrease in U.S. jobs). Given that the Fed does not want to see the economy enter a self-reinforcing downward spiral leading to more layoffs, she personally favors one more rate cut, then maintaining rates for a period, with a firm commitment to bringing inflation down to 2% within the next two years—a so-called hawkish rate cut. She noted that for Americans, the main concerns are inflation and prices. ( Jinshi )