Federal Reserve governor says bank is in ‘wait and see’ period

OAN Newsroom
UPDATED 10:01 AM PT — Wednesday, November 20, 2019

A key member of the Federal Open Market Committee said “it will take some time” to see the impact of the bank’s latest interest rate cuts on the U.S economy. In an interview Wednesday, Federal Reserve Governor Lael Brainard said she wants “to monitor and assess how the economy is reacting” to those moves before making any decisions on future monetary policy.

She went on to emphasize the Central Bank is now taking a “wait and see” approach amid continued uncertainty surrounding the global slowdown and the ongoing trade war with China. Brainard is a permanent voting member on the committee and voted in favor of all three rate cuts this year.

FILE – Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge, Mass. (Reuters Photo/Brian Snyder)

“We still hear from some our business contacts that they are sitting on the sideline waiting for some of this uncertainty to be resolved,” she explained. “I don’t think the expectation is for a major deal, but even a truce would be a significant reduction in uncertainty for a lot of businesses around the country that are sitting in the sidelines in terms of investment”.

The Federal Reserve is set to release the minutes of its October meeting Wednesday afternoon, which will give more insight into the bank’s latest policy meeting.

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