Fed Vice Chairman Richard Clarida It said on Wednesday that it expects the conditions to be met to raise interest rates by the end of 2020 if inflation and employment results meet its forecasts, Reuters reported.
Featured statements
“The start of the Fed rate hikes in 2023 is fully consistent with the US central bank framework.”
“My inflation and employment forecasts are similar to the median of the Fed policymakers’ June forecasts.”
“The peak employment assessment is expected to be reached by the end of 2022.”
“We have made progress toward targets since the ‘additional substantial progress’ bar was set for phasing out asset purchases in December 2020.”
“In future meetings, the Fed will reassess progress toward our targets and give advance notice of the reduction.”
“The Fed’s policy decisions will depend on the results, not the outlook, which is uncertain.”
“If core inflation hits 3% this year, as expected, I would consider it much more than a moderate overshoot of the Fed’s target.”
“We see upside risks to the inflation forecast.”
“According to the Summary of Economic Projections, the median projected inflation is projected at an average of 2.6% until the end of the year 2022, 2.5% until the end of the year 2023.”
“The support of fiscal policy, together with monetary policy, can compensate for the restriction of the effective lower limit.”
Market reaction
The US Dollar Index it continues to climb after these aggressive comments and was last seen gaining 0.06% on the day at 92.12.
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