Fed’s Brainard backs smaller hikes, saying inflation easing

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Vice Chair Lael Brainard noted Thursday that recent reports show high inflation in the United States is cooling and suggested it was possible that price acceleration may cool without causing significant job losses. Brainard sketched out a more optimistic outlook for inflation than some some Fed speakers have in recent days. At the same time, Brainard cautioned that inflation is still high and said the Fed would have to keep interest rates elevated “for some time” to combat price increases. She did not explicitly signal whether she would support a quarter-point or half-point rate increase at the Fed’s next meeting Jan. 31-Feb. 1.