Clarida gave generally high marks to the U. S. economy and he reiterated the Fed’s broader position that it will base policy on data as it unfolds.
Interest rate policy is right where it should be considering the current state of the U. S. economy, though that could change if conditions weaken, Federal Reserve Vice Chairman Richard Clarida said Thursday.
Clarida gave generally high marks to the U. S. economy and he reiterated the Fed’s broader position that it will base policy on data as it unfolds.
He did, however, outline the conditions under which he might consider cutting rates, which the market is expecting and President Donald Trump is demanding.
«If the incoming data were to show a persistent shortfall in inflation below our 2 percent objective or were it to indicate that global economic and financial developments present a material downside risk to our baseline outlook, then these are developments that the [Federal Open Market Committee] would take into account in assessing the appropriate stance for monetary policy,» Clarida said during a speech at the Economic Club of New York.
