Fed vice-chair Clarida says Fed rates will be lower for longer, will delay lift-off

Federal Reserve Vic Chair Clarida in Q&A

Earlier from the chap:

• Fed's Clarida talks about the new policy framework

'Lower for longer' and 'delayed liftoff' are right out of the Fed script right now. No surprises.

On inflation:

• says inflation expectations are critically important, if expectations 'drift up persistently' that would indicate policy needs to be adjusted

OK, that's different. What's the point about inflation expectations? Well, I posted about them in a different context a while ago, check if out here if you are interested in why Clarida is interested:

• The argument is that inflation expectations can become self-fulfilling. For example during times of increasing inflation - people see inflation rising so they tend to buy more quickly, thus prompting prices to rise faster. People expect faster inflation (i.e. its 'unanchored' ... rising quickly)