Keep pulling the thread on Lael Brainard.
Following a Federal Reserve decision under new chair Kevin Warsh, the 2-year Treasury yield jumped to its highest level since April 2025.
The Federal Reserve's recent dot plot indicated that approximately half of the FOMC members expect to see a rate hike this year.
According to Lael Brainard, half of the FOMC's economic projections indicated that core inflation will end the year at 3.3%, warranting one or more rate hikes.
A memorandum of understanding between the United States and Iran has led to the reopening of the Strait of Hormuz, with the US naval blockade now officially over.
Under a new memorandum of understanding, Iran is expected to allow toll-free transit of vessels through the Strait of Hormuz for the next 60 days.
Lael Brainard believes the current buildout of AI data centers is creating a near-term inflationary impulse that is likely to lift core inflation in the second half of this year.
According to Lael Brainard, the level of investment in AI data centers is equivalent to the total nonresidential fixed investment of past years.
Lael Brainard predicts that AI will eventually become a disinflationary force as business models transform and the broader economy becomes more productive.
Lael Brainard warns that a significant stock market correction could occur in the AI sector if revenue data fails to justify current high valuations, given the high levels of credit and leverage in the space.
Federal Reserve Chair Kevin Warsh believes that financial market prices are the most important source of information for guiding central bankers.
Lael Brainard observed that Federal Reserve Chair Kevin Warsh emphasized price stability to such an extent that it sounded like the central bank had a single mandate.
Federal Reserve Chair Kevin Warsh is establishing task forces to review balance sheet policy, communications, data sources, the inflation framework, and productivity.