Comments from the Fed's Clarida in the Q&A with Bostic:
- It looks like the economy can pick up speed this year
- We could have 6-7% GDP growth this year
- It may take more time to reopen economy than to close it
- Most of price rises will be transitory but we have to be attuned and attentive to incoming data
- If we were to see upward pressure on inflation, I have no doubt we would address it; but that's not my base case
- As we go through the year, we will be watching the data regarding QE
- We will certainly be giving advance warning before slowing the pace of QE
There was an interesting question where Clarida said that because they see inflation as transitory, he will be putting more weight on employment.
Also notable was that he said 'attuned and attentive' at least three times. Could be a hint we'll hear that from Powell or see it in an FOMC statement.
Bostic also said that after a pandemic, demand can come back faster than supply.
On central bank digital currencies, Bostic said "real time assessment of ability to pay" would create some safeguards in the system that would benefit everyone.
Watch it live here:
