Federal Reserve Vice Chairman Richard Clarida said Thursday that it disagrees with the view that fiscal support this year poses a long-term upside risk to inflation, as reported Reuters.
Featured statements
“Monetary policy does not care about wage inflation; our mandate is price inflation.”
“Productivity growth can lead to higher wages without generating unwanted price inflation.”
“Valuations of assets, liquidity, capital and leverage are generally consistent with the baseline vision of a strong recovery and fiscal support.”
“The Fed doesn’t want SLR over time to be an impediment to growth.”
“We will focus intensively over the next several months on how to refine and recalibrate SLRs.”
Market reaction
These comments do not appear to have a significant impact on market sentiment. At the time of writing, the S&P 500 index it was down 0.55% on the day to 3,867.
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