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Fed's Brainard backs gradual rate hikes but warns of financial 'imbalances' that could trigger faster action
The Federal Reserve likely will continue gradual interest rate increases but will accelerate the pace if signs that financial imbalances continue to build, central bank Governor Lael Brainard said in a speech Wednesday. Speaking in Detroit, the Fed official echoed recent remarks from Chairman Jerome Powell that while the current gradualist approach is appropriate, officials are on the lookout for an acceleration in inflation or distortions in financial markets that would trigger more aggressive action. "While the information available to us today suggests that a gradual path is appropriate, we would not hesitate to ... (full story)