US Fed's Clarida: Fed can afford to wait and see how the year plays out

Joshua Gibson FXStreet

US Federal Reserve Vice Chairman Richard Clarida spoke to Money Marketeers in New York, delivering his thoughts on the Fed's stance heading into 2019.

Key highlights

Fed policy should respond to economic 'crosswinds' if they continue.

Financial conditions have tightened materially, and global growth prospects have definitely moderated.

Fed can afford to be patient, assess 2019 data as it comes out before deciding how to adjust policy.

US economic conditions remain favourable for the time being; expecting above-trend growth to continue.

Fed "will not hesitate" to make adjustments to asset-offloading strategy.

Recent data weakness infers that overall inflation may not yet be sustainable over 2%.

US monetary policy is not on a preset course.

Prudent to wait until after global slowdown impacts US economy before adjusting course.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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