Fed's Brainard: FOMC needs to adjust 'stale' language around accommodative policy in statement

Below are the key highlights from the Fed Governor Lael Brainard's recently delivered prepared remarks.

• Italy political developments have reintroduced some risk to synchronized global growth.
• Gradual U.S. rate hikes appropriate; alert to emerging risks and ready to adjust as needed.
• Euro area financial conditions have worsened due to Italy political uncertainty.
• I expect U.S. policy to gradually shift to 'modestly beyond neutral' setting.
• Longer-run neutral policy rate likely to remain historically low even if it rises in shorter term.
• U.S. fiscal stimulus, years below inflation target mean gradual rate hikes warranted.
• A challenge to set policy in face of sizeable fiscal stimulus.
• Global downside risks include emerging-market capital-flow reversals, U.S. trade policy.
• Major global central banks likely to remain on divergent policy paths for some time.
• Downplays negative signal from any possible yield-curve inversion.
• FOMC likely needs to adjust 'stale' language around accommodative policy in statement.