Fed Vice Chairman Lael Brainard gave more cautious messages, stating that he also closely monitors global risks, unlike Fed members who previously gave hawkish messages.

Fed Vice Chairman Lael Brainard recently made a speech that can be considered cautious in the face of the hawkish outbursts of Fed members.

Speaking at the annual meeting of the National Association for Business Economics in Chicago, Brainard underlined that the global risks posed by interest rate hikes should be monitored and underlined that the weakening foreign demand could adversely affect the United States.

Stating that the effect of the cumulative tightening implemented by the Fed may be seen with a lag, Brainard said, “We see the effects in some areas, but it will take time for the cumulative tightening to reflect on the economy as a whole and to bring down inflation. There is a high degree of uncertainty. Along with the evolution of the economic outlook, I also closely follow the global risks.”

Chicago Fed President Charles Evans also stated at the same conference that the level where the Fed will stop in interest rate hikes should be reached as soon as possible and that there is serious uncertainty about where this level is.