Bloomberg Talks Former National Economic Council Director Lael Brainard Talks Fed
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Jan 28, 2026 
Lael Brainard, former Fed vice chair and NEC director now at Georgetown, shares her take on recent Fed moves. She discusses Powell’s Supreme Court appearance and what it signals for central bank independence. She outlines political pressure around choosing a new Fed chair. She explores the Fed’s focus on aggregate labor amid an AI-driven, K-shaped recovery.
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Court Case Could Redefine Fed Independence
- The Supreme Court case on firing Fed governors could fundamentally shape Fed independence and its ability to operate without political interference.
- Lael Brainard stresses that due process protections from 1935 matter for preserving the Fed's mandate and credibility.
Fed Emphasizes Data Over Politics
- Brainard says the Fed is focusing on data and sticking to Congress's dual mandate: maximum employment and 2% inflation.
- She argues Chair Powell's statement emphasized independence and avoided political distractions.
Committee Dynamics Limit Chair's Power
- A new chair will need support from existing committee members and must act based on evolving data, not just presidential preference.
- Brainard notes ideological alignment with the president matters, but committee dynamics and data constrain drastic shifts.