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Fed’s Lael Brainard Warns on Inflation, Financial Stability Risks
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A senior Federal Reserve official warned of the risks that additional inflationary shocks could lead the central bank to raise interest rates to higher levels.
The Fed is raising rates at its fastest pace since the early 1980s to combat inflation that is at a 40-year high. Risks of further economic or geopolitical disruptions that lead to even greater supply and demand imbalances “cannot be ruled out,” said Fed Vice Chairwoman Lael Brainard in a speech prepared for delivery at a conference in New York on Friday.
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