Fed's Brainard: There is still a lot of ground to cover on jobs and inflation

When asked about market expectations for earlier rate hikes, Federal Reserve Governor Lael Brainard said that there is still a lot of ground to cover on jobs and inflation, as reported by Reuters.

Additional takeaways

"FOMC statement provides very clear guideposts for both rates and asset purchases."

"Will take the potential for fiscal stimulus into account in modal outlook, but must also look at continued risk from the virus."

"Reasons to be optimistic that the labour market scarring can be avoided."

"Fed has both the tools and the mandate to ensure there is no shift of long-term inflation expectations above 2%."

"Worried about how quickly the groups hit hardest by the pandemic recession will return to good jobs."

Market reaction

The US Dollar Index showed no reaction to these comments and was last seen losing 0.3% on the day at 90.76.