Fed’s Brainard: Inflation well anchored by some signs of imbalances

Brainard in Washington

  • Warns of growing pro-cyclical pressures, including rising asset prices and leverage
  • Too early to revisit bank capital rules
  • Appropriate to require banks to build a counter-cyclical capital buffer

She managed to make a speech about bank capital into something moderate hawkish. That’s an accomplishment.

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