Inflation is cooling, Fed Vice Chair Lael Brainard says

Federal Reserve Vice Chair Lael Brainard noted Thursday that recent reports show high inflation in the United States is easing and suggested it was possible that price acceleration may cool without causing significant job losses.

Speaking in Chicago, Brainard sketched out a more optimistic outlook for inflation than some some Fed speakers have in recent days. "Inflation has declined in recent months from very high levels," she said, noting a decline in energy prices since a surge last summer.

At the same time, Brainard cautioned that inflation is still high and said the Fed would have to keep interest rates elevated "for some time" to curb price growth. She did not explicitly signal whether she would support a quarter-point or half-point rate increase at the Fed's next meeting Jan. 31-Feb. 1.