Fed's Clarida: Not yet time to pull back on Fed support for economy

Federal Reserve's Vice Chairman Richard Clarida argued on Wednesday that it's not yet time to pull back on the Federal Reserve's support for the economy, as reported by Reuters.

Additional takeaways

"As the economy changes, matching workers with companies may take some time."

"Will be looking at trends in wages, compensation, and productivity."

"We have not made substantial further progress toward job market goals."

"Most recent employment report conveys the wisdom of the outcome-based Fed policy."

"As we go through the year, we will assess data and will communicate well in advance about any taper decision."

"We will be prudent and appropriate to gather more evidence before making that judgment."

"Progress is uneven in economic recovery; there is a substantial societal benefit to getting to max employment."

"Broadly supporting the idea of infrastructure spending."

"Fed does not have unlimited tolerance for inflation; well-anchored inflation expectation is essential."

Market reaction

The US Dollar Index edges higher after Wall Street's opening bell and was last seen gaining 0.35% on the day at 90.48.