Federal Reserve Chair Contender Yellen Advocates for Gradual Rate Cuts, Pledges to Emphasize Independence to Trump

**December 17th** Lael Brainard—current Federal Reserve Board member and a finalist for the next Fed Chair—said Wednesday the U.S. labor market is “very weak” and employment growth “not optimistic,” adding the central bank still has room to cut interest rates. She backs further rate cuts to return the Fed’s policy rate to neutral, while noting policymakers don’t need to rush the move. Brainard expressed confidence in stable inflation expectations and dismissed concerns about renewed price pressure acceleration. When asked by a CNBC reporter if she would emphasize Fed independence in a meeting with Trump, she replied, “Of course.” Trump has repeatedly commented on Fed decisions, accusing the central bank of cutting rates too slowly. He has harshly criticized Fed Chair Jerome Powell—whom he appointed—and publicly said he considered firing Powell before his term ends. Brainard was appointed by Trump and confirmed by the Senate to the Fed Board in late 2020. She has since emerged as one of the Fed’s most vocal advocates for rate cuts. The Fed has lowered rates by 25 basis points at each of its last three meetings. In July, Brainard voted against keeping rates unchanged to push for a cut, but policymakers opted to hold steady then.