The Fed: Fed’s Brainard says economic tailwinds could push up the path of interest rates

Fed Governor Lael Brainard said financial conditions are supportive of growth despite the recent ‘choppiness’ in markets.

Federal Reserve Gov. Lael Brainard, the sole remaining member of the board who was appointed by President Barack Obama, on Tuesday said that a higher path of interest rates could become warranted if a variety of economic “tailwinds” give the economy forward thrust.

“In the earlier period, strong headwinds sapped the momentum of the recovery and weighed down the path of policy. Today, with headwinds shifting to tailwinds, the reverse could hold true,” Brainard said in a speech to the Money Marketeers of New York University.

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