Fed’s Brainard sees possible 50bp Sept hike

The Fed’s vice-chair Lael Brainard has said that a half-point rate rise may be required in September if inflation does not fall.

Speaking to CNBC Brainard said: “If we don’t see the kind of deceleration in monthly inflation… then it might well be appropriate to have another meeting where we proceed at the same pace.” When asked if the Fed had any plans for a pause in rate rises, she said, “Right now it’s very hard to see the case for a pause. We’ve still got a lot of work to do to get inflation down to our 2 per cent target.”