Truth bomb time. Ex-Fed Reserve Vice Chair Clarida says rates must rise to at least 3.5%Bloomberg (gated) with comments from the prior vice-chair of the Federal Reserve Richard Clarida.
Free to speak his mind now I guess.
Fed will need to raise short-term interest rates to at least 3.5% to bring surging inflation under control
"Expeditiously 'getting to neutral' will not be enough this cycle to return inflation over the forecast horizon back to the 2% longer-run goal,"
"The funds rate will I believe ultimately need to be raised well into restrictive territory, by at least a percentage point"
Comments extracted from remarks prepared for delivery to a Hoover Institution conference on Friday. More at that gated link above.
Bye now!
Source: Truth bomb time. Ex-Fed Reserve Vice Chair Clarida says rates must rise to at least 3.5% (https://www.forexlive.com/centralbank/truth-bomb-time-ex-fed-reserve-vice-chair-clarida-says-rates-must-rise-to-at-least-35-20220505/)
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