Two key Federal Reserve officials said Monday they expect inflation to get closer to the central bank's target.
In separate prepared remarks in Washington, neither Fed Vice Chairman Stanley Fischer nor Gov. Lael Brainard made direct reference to next week's meeting of the Federal Open Market Committee. But Brainard argued for patience in rate increases amid possible risks that inflation and U.S. economic activity will fall.
"Tighter financial conditions and softer inflation expectations may pose risks to the downside for inflation and domestic activity. From a risk management perspective, this argues for patience as the outlook becomes clearer," Brainard said.
Both Fischer and Brainard vote on the Fed's policymaking committee, which will release its policy decision and outlook next week. The comments followed Friday's February jobs report, which showed the U.S. economy added a better-than-expected 242,000 jobs.