Fed official Lael Brainard says labor market, inflation may return to pre-pandemic equilibrium

ARLINGTON, Virginia — A senior Federal Reserve official has said the economy is likely to fully recover from the coronavirus and warned of prematurely concluding that the central bank should raise interest rates.

Fed Governor Lael Brainard, one of the main contenders for the central bank’s presidency next year, has pushed back fears that inflation will pick up soon due to difficulties in hiring workers.