The Fed: Fed’s Brainard calls for continued ‘prudence’ in setting interest-rate policy


Fed governor Lael Brainard

Federal Reserve Gov. Lael Brainard on Monday made a forceful dovish case for holding rates steady as the U.S. central bank prepares to meet.

Markets has been anticipating Yellen’s remarks. Some thought she might move to the center and signal a rate hike in September.

But Brainard stuck to her guns, saying the U.S. central bank must stay accommodative to guard against the low-growth, low-inflation environment that bedevils Europe and Japan.

Markets DJIA, +1.32% breathed a sigh of relief and rallied by more than 200 points because the risk that she might have agreed to signal a September rate hike had passed.

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