Fed's Clarida: Fed won’t tighten solely because unemployment falls

Federal Reserve's Vice-chair Richard Clarida has said that the Fed won’t tighten solely because unemployment falls.

''Fed will react to data on inflation itself.''

''The accommodative policy will remain until some time after goals met.''

''Fed’s Clarida: Fed will be lower for longer and delay liftoff.''

''Expect to taper prior to any decision on lifting rates.''

''Expect similar sequencing to bond purchase reductions versus interest rate increases as in 2014-2015 cycle.''

There has been no reaction in the markets. 

Meanwhile, the dollar dipped to three-week lows on Wednesday.

Treasury yields have been holding below recent highs, reducing the relative attractiveness of the US currency.

The dollar index DXY was on the backfoot on the day and dropped to as low as 91.57, the lowest since March 18.