Earlier during the Tuesday, Bloomberg reported comments from the Federal Reserve Vice Chair Richard Clarida from an event in Texas. Fed’s Clarida praised strength of the US economy but refrained from altering his earlier bias towards the need of Fed’s patience on monetary policy.
Highlights from the speech:
- US economy is operating close to full employment, economy in a good spot now.
- Inflation is near Fed’s target.
- We are in a very good place now on financial regulation, supervision.
- With the economy where it is today, inflation muted, Fed can afford to be patient.
- Global demand for currency, bank demand for reserves have risen; balance sheet will be bigger than in past.
- Yield curve is flat but that’s different from a recession-signalling inversion.
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