The decisions could ripple across policymaking at the White House and the Fed.
Ms. Brainard is seen as the most liberal top official at the central bank and a potential brake on the Fed’s campaign to raise interest rates to tame inflation. Raising interest rates cools consumer and business demand, slowing the labor market in an effort to restrain rapid inflation. Ms. Brainard has at times been more focused on keeping the job market strong, a position that Wall Street typically calls dovish.
“I think this should cause you to upgrade your expectations for interest rates a little bit — Lael Brainard was on the dovish end of the spectrum, and very respected,” said Jason Furman, an economist at Harvard University and a former economic adviser during the Obama administration. “One potential voice for restraint is going to be absent.”
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