Clarida speaking at the Brookings institution
Clarida answering questions as he speech at the Brookings institution
- Pandemic leveled unprecedented below to economy, which is in a deep hole and we're starting to dig out
- It will take some time to recover
- Long-run price stability is still 2%
- would pushback against any assertions that FOMC cannot achieve goal of 2% inflation
- Fed showed in 2018 it can't get inflation to 2% from below
- economic recovery from virus has initially been robust
- Fed tools still have power but economy in deep hole
- virus infection rates increasing at a high rate
- next couple of months could be challenging for economy
- as of November FOMC meeting we like our policy calibrated
- further fiscal, monetary policy support likely needed
- Fed emergency facilities have worked well as backstop
- extending the facilities a decision for Fed, treasury
- were just turning to that discussion
- Fed's current asset buying is already at large scale
- financial conditions are accommodative
- not considering the yield curve control right now
- yield curve control is still in the Fed toolkit
- saw improvement in income distribution near the end of last cycle
Meanwhile San Francisco present Mary Daly is speaking but her comments are not specifically focused on the current economy nor Federal Reserve policy
