|

Fed's Clarida: We are still long way from goals, want to see actual progress

In a CNBC interview, Federal Reserve's Richard Clarida says it is not yet time to talk about taper.

Key comments

Clarida says we are still long way from goals, want to see actual progress.

Clarida says not there yet, on 'substantial progress'.

Clarida says true US unemployment rate closer to 10%.

Clarida says Yellen indicated she was not predicting or advising on Fed policy.

Clarida says baseline view is that we don't overheat.

Clarida says if see unforseen inflation pressures will use tools to bring it down.

Clarida says there are risks to both sides of outlook that we have to factor in.

Clarida says will be upward pressure on inflation as economy reopens, but over time those will work out.

Clarida says data is telling us that inflation won't persist over a long period of time.

Clarida says asset purchases are providing important support to economy.

Clarida says he expects growth this year of 7%.

Clarida says expect growth rate to attenuate as we dig out of deep hole.

Clarida says US will be a locomotive for global growth this year.

Clarida says it's going to take some time to get a sense of how the labor market will adjust.

Market reactions

The markets are consolidated in the afternoon on Wednesday with the US dollar flat on the day in the last half of the remaining hour on Wall Street.

DXY is holding around 91.3120 as the comments are digested. 

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

EUR/USD recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday. 

Gold rallies above $5,150 as Trump’s tariffs boost haven demand

Gold price extends the rally above $5,150 in the Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, which boost safe-haven flows. US-Iran geopolitical risks also linger, supporting the Gold price upside. 

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.