Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: Two were martyred in an initial toll of the Israeli drone strike that targeted the al-Asira neighborhood in the city of Baalbek, eastern Lebanon
Al Mayadeen's correspondent: An Israeli drone strike targeted the al-Asira neighborhood east of Baalbek, eastern Lebanon
Sheikh Naim Qassem to the pager attack survivors: You are the greatest resistance. Know that 'Israel' will fall because it embodies aggression, crime, and occupation; victory is truly yours
Sheikh Qassem to the pager attack survivors: The value of what you are doing despite your wounds is immense, and here you are, treading the path of the Master of Nation's Martyrs and the leaders
Sheikh Qassem to the pager attack survivors: You are moving forward with insight deeper than sight itself. The enemy sought to eliminate your role in the battle, yet you remain steadfast and continue the fight
Hezbollah Secretary-General Sheikh Naim Qassem to the pager attack survivors one year later: You are healing from your wounds and rising above them. You have successfully passed the test
Palestinian media: Reports of stabbing operation in occupied al-Quds.
Israeli media: Sirens blare in Arava in South, near Ramon Airport.
Egyptian PM Mostafa Madbouli: Egypt is targeted in plans to redraw regional map
AEOI Chief Mohammad Eslami: Our presence in IAEA General Council and fact-checking helped in preventing unilateral rhetoric that aims to portray Iran as an unregulated country

US Fed Vice Chair: Federal Reserve could overdo interest rate hikes

  • By Al Mayadeen English
  • Source: Agencies
  • 8 Sep 2022 09:34
3 Min Read

US Federal Reserve Vice Chair Lael Brainard was more inclined than her boss to accept that there are significant dangers to both increasing rates too high as well as risks not raising them high enough.

  • x
  • Vice Chair of the Federal Reserve Lael Brainard
    Vice Chair of the Federal Reserve Lael Brainard

The Vice Chair of the Federal Reserve, Lael Brainard, admitted the possibility that the US Federal Reserve could cross a threshold in its continuous interest rate hike, a remark that was conspicuously absent from Chair Jerome Powell's address at Jackson Hole, Wyoming, in late August.

Brainard said in a speech delivered in front of a banking group in New York that "At some point in the tightening cycle, the risks will become more two-sided," adding that the velocity with which interest rates rise and the uncertainty surrounding the timing of their economic consequences "create risks associated with overtightening."

Furthermore, the Vice Chair warned that history showed that "it is important to avoid the risk of pulling back too soon" noting that when it comes to inflation, "our resolve is firm, our goals are clear, and our tools are up to the task."

While both Brainard and Powell appear to be completely on board with the Fed's drive to rapidly raise interest rates to combat inflation, Brainard was more inclined than Powell to accept that there are significant dangers to both increasing rates too high as well as risks not raising them high enough.

Related News

Oil prices rise on Russia supply fears and Fed policy outlook

Appeals Court halts Trump’s bid to oust Fed Governor Lisa Cook

US Senator Elizabeth Warren and other political figures have argued that firms are profiting at the expense of high inflation.

Brainard is acknowledging evidence that the peculiar conditions of the pandemic have permitted businesses to boost prices in ways that are out of line with their own costs, even if she does not entirely endorse that narrative.

On the topic of inflation, Brainard further stated that "a reduction in currently elevated margins... could make an important contribution to reduced inflation pressures in consumer goods," adding that "overall retail margins have risen significantly more than the average hourly wage that retailers pay workers to stock shelves and serve customers over the past year, suggesting that there may also be scope for reductions in retail margins."

US Federal Reserve Chair stated in his August speech

While failing to fight the current 40-year high prices in the US would be harmful, controlling high inflation would also inflict "pain" on families and businesses in the country, US Federal Reserve Chair Jerome Powell said in August during a speech to global policymakers. 

In the annual gathering of central bankers in Wyoming's Jackson Hole, Powell spoke and did not hesitate or leave room for doubt about the central bank's course, vowing to act "forcefully."
 
He warned the US is likely to slow for a continuous and extended period, and the strong job market will suffer in order to decrease the prices, describing the situation as the "unfortunate costs of reducing inflation." 
 
The Fed has been on a combative campaign to higher interest rates, and Powell made it clear in his speech that the fight against inflation is not over. 

Read more: Inflation could become rooted in US economy

  • US Federal Reserve
  • US inflation
  • Lael Brainard
  • US interest rate hikes
  • jerome powell

Most Read

Pro-"Israel" conservative Charlie Kirk shot during Utah speech

American far-right activist Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025
Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

  • Palestine
  • 14 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Britain Trained Israeli Soldiers Involved in Gaza War: Declassified
Europe

UK training of Israeli officers sparks outcry over Gaza war complicity

Luxembourg's Prime Minister Luc Frieden arrives for an EU summit at the European Council building in Brussels, Thursday, June 26, 2025. (AP Photo/Omar Havana)
Politics

Luxembourg to recognize Palestine at UN summit next week

European Union flags flap in the wind outside EU headquarters in Brussels, Wednesday, Sept. 3, 2025 (AP)
Politics

EU exec. branch to adopt new sanctions against 'Israel' on Wednesday

Charlie Kirk killing suspect faces charges in Utah court hearing
US & Canada

Charlie Kirk murder suspect faces formal charges in Utah court hearing

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS