MNI BRIEF: Fed To Deliberate Guidance on QE: Brainard

The FOMC will debate how to set guidance on its asset purchases in upcoming meetings while continuing to buy at least at the current pace to keep borrowing costs low, Federal Reserve Governor Lael Brainard said Wednesday.

"In the months ahead, we will have the opportunity to deliberate and to clarify how the asset purchase program could best work in combination with forward guidance to support achievement of maximum employment and 2% average inflation," she said in remarks prepared for a Society of Professional Economists virtual conference.

Current and former Fed officials told MNI this month policymakers may not be willing to extend or expand QE unless they see another outbreak of financial market tension or a slip in inflation expectations.