Federal Reserve Governor Lael Brainard said Wednesday she wants to see how the US economy is doing before making changes to the central bank's current stance on monetary policy.
"The committee has made a pretty substantial adjustment in the interest rate path in recent meetings," Brainard told CNBC's Steve Liesman on "Squawk on the Street." "It will take some time to see it work through the economy, so I will definitely monitor and consider how the economy reacts to those cuts. "
The adjustment Brainard refers to is the three interest rate cuts from the US Central Bank. this year. These interest rate cuts followed four interest rate rises in 201
The Fed's latest interest rate cut came in October. At that time, Chairman Jerome Powell raised the bar for further interest rate cuts, but noted that the Fed is still a good distance away from trip prices at any time.
Brainard noted that housing investment has improved since the Fed began easing again, but reiterated that she will "wait a bit" before the central bank makes changes when considering how "the outlook is adapting."
One of the factors Brainard explains in Her outlook is the status of US-China trade relations, she said. Both countries have been engaged in a trade war for almost two years. Back in October, President Donald Trump said a so-called phase one deal would be signed this month. However, there are reports that the negotiations may hit a premix.
"We have taken out some insurance against it, but we still hear from our business contacts that they are on the sidelines waiting for some of this uncertainty to be resolved," Brainard said. "I don't think the expectation is a big deal, but even a ceasefire will be a significant reduction in uncertainty for many companies around the country that are on the sidelines when it comes to investment."
Brainard's comments came before the release of the minutes from the Fed's October meeting. The protocol is scheduled for release at 2 PM ET.
SE: CNBC's full interview with Fed's Lael Brainard