Fed's Clarida: Inflation likely to rise somewhat further before moderating
|Inflation in the US is likely to continue to rise "somewhat further" before moderating towards the end of the year, Federal Reserve's Vice Chairman Richard Clarida said on Wednesday, as reported by Reuters.
Additional takeaways
"Near-term labor market outlook more uncertain than economic outlook."
"Economy remains a long way from our goals."
"Likely it will take some time for substantial further progress to be achieved."
"Fed is committed to using the full range of tools to support the economy for as long as it takes."
"US economic recovery expected to pick up steam this year."
"True unemployment adjusted for participation is 8.9%."
"Implications of labor supply/demand rebalancing for wages, prices will depend on the pace of labor force participation recovery, mismatches."
"Likely to see only transitory effect on underlying inflation."
"Inflation expected to return to, or perhaps run somewhat above, 2% in 2022, 2023."
Market reaction
The US Dollar Index is edging lower after jumping above 90.50 with the initial reaction to US inflation data. As of writing, the index was posting small daily gains at 90.30.
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