Is the Federal Reserve Taking Notes from the Bank of Japan?

Posted on 09/01/2020

Lael Brainard is an American economist and member of the U.S. Federal Reserve’s Board of Governors. In remarks to the Brookings Institution, Brainard said the Federal Reserve should “pivot” to providing more support for U.S. economic growth in the months ahead. She added that negative interest rates are not attractive in U.S. context, but yield curve control could potentially be a tool. Brainard is the latest Federal Reserve executive to argue a move toward inflation averaging.

The Federal Reserve Bank of New York could reach such goals by buying more assets such as corporate bonds, other privately-held bonds, and U.S. Treasuries.

Keywords: Federal Reserve System.

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