Federal Reserve Gov. Lael Brainard, painting a dark picture of the U.S. economic outlook amid a resurgence of virus infections, said the central bank should pivot its forward guidance and asset purchases toward providing longer-run accommodation.
"A thick fog of uncertainty still surrounds us, and downside risks predominate,” Brainard said in remarks Tuesday during a virtual event hosted by the National Association for Business Economics.
"Fiscal support will remain vital,” she added. "Looking ahead, it likely will be appropriate to shift the focus of monetary policy from stabilization to accommodation by supporting a full recovery in employment and a sustained return of inflation to its 2 percent objective.”