Comments by Fed vice chair, Richard Clarida, to Bloomberg TV
- US is close to 2% inflation target
- Outlook is for sustained economic expansion
- There is elevated uncertainty in the last six to eight weeks
- Uncertainty on trade is weighing on sentiment
- Says will act appropriately to sustain expansion
- Europe and Japan are well away from where they want to be
- Fed is closer to its goals than other major economies
- FOMC is monitoring closely cross currents facing the economy
- There is a broad agreement that case for looser Fed policy has increased
- Fed has the tools necessary to sustain expansion
- Fed has flexibility to act if needed given interest rates are a distance away from zero
The language in which he is speaking with underscores the more dovish tone set out by the FOMC meeting statement and by Powell in his press conference. There's plenty of talk about tackling economic downturns and using rate cuts as a tool and that gives a firm suggestion on where the Fed is standing now ahead of its July meeting.
There isn't any major remarks so far by Clarida but this will prove to reaffirm that the Fed is set to walk down the easing path should they see fit. He hasn't ruled out a cut in July either so that shows that they are comfortable with what the market is pricing in currently.