Brainard says Fed to begin shrinking balance sheet as soon as May

Bloomberg/Craig Torres/4-5-2022

“Federal Reserve Governor Lael Brainard called the task of reducing inflation pressures ‘paramount’ and said the central bank will raise interest rates steadily while starting balance sheet reduction as soon as next month.”

USAGOLD note: Bloomberg posted this article prior to the release of the Fed minutes Wednesday morning. Reaction to those minutes has been muted thus far. Though the public tone among Fed members including Brainard has been hawkish, the policy itself, as hinted in those minutes, is falling on the dovish side of the monetary ledger.