Fed's Brainard: Fed's longer-run neutral rate estimate not relevant for rate path

Below are key takeaways from the speech delivered by the Federal Reserve governor Lael Brainard at the Detroit Economic Club, Detroit, Michigan.

• Our challenge is to sustain full employment and inflation at 2 percent, which is likely to warrant continued gradual increases in the federal funds rate.
• With fiscal stimulus in the pipeline and financial conditions supportive of growth, the shorter-run neutral interest rate is likely to move up somewhat further, and it may well surpass the longer-run equilibrium rate for some period.
• Fed's published longer-run neutral rate estimate, now at 2.9pct, is not relevant for rate path.