Comments from Clarida on Bloomberg
- Rate cuts will take time to filter through to economy
- The Powell Fed has been very open-minded about finding full employment, we're not prepared to say we're necessarily at full employment. We're willing to probe
- Labor market participation among prime age individuals is picking up, but we're still below where we were 20 years ago
- We're not that far away from 2% inflation
- Coronavirus is a 'wildcard'. We're looking at effect on China, global growth and ultimately the US
- My view is that inversion of yield curve is that it's being driven by international flows and doesn't reflect US outlook
- I'm not concerned about the inverted yield curve
- Powell Fed has indicated it can act in anticipation of shocks
- A one-or-two-quarter slowdown in growth due to virus wouldn't change Fed's outlook
There isn't much here to chew on. There's no new message from the FOMC.
