WASHINGTON — Federal Reserve Vice Chair Lael Brainard said Friday that U.S. interest rates will likely have to remain high for an extended period to combat inflation, capping a week of tough rhetoric by Fed officials.
In remarks at a conference hosted by the Federal Reserve Bank of New York, Brainard said that international turmoil still threatens to disrupt global supplies of commodities and manufactured parts, a key factor pushing inflation higher. Additional inflationary shocks from Russia’s invasion of Ukraine, China’s COVID lockdowns, or severe weather events globally “cannot be ruled out,” she said.
“Weather conditions in several areas, including China, Europe, and the United States, are exacerbating price pressures through disruptions to agriculture, shipping, and utilities,” Brainard said.
Droughts in much of the U.S. this year have contributed to higher food prices.
Last week, the Fed raised its benchmark interest…
