MNI BRIEF: Resilient Job Mkt While Hiking To Neutral-Brainard

Federal Reserve Governor Lael Brainard said Tuesday the central bank raising the fed funds rate to a neutral range can bring inflation down while sustaining job market growth.

"I'd expect to see labor demand coming down and that should take place in large measure through reduction in the current very elevated level of vacancies," she said in Q&A at a WSJ event. "As we go forward on this path of moving monetary policy to a more neutral level, I really see that as being consistent with both bringing inflation down and sustaining the recovery."

Speaking a few hours after the BLS showed core goods prices were down 0.4% in March from the previous month, Brainard said "it's very welcome to see the moderation" but "inflation is too high and getting inflation down is going to be our most important task."