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
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children
The Ministry of Health in Gaza: Gaza's hospitals recorded six deaths due to starvation and malnutrition in the past 24 hours, all of them adults

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

  • By Al Mayadeen English
  • Source: Agencies
  • 8 Sep 2022 10:34
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

Trump says 'would love' to see Fed Chair Powell resign

Trump demands Powell resign as pressure mounts over Fed renovation

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

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

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