Fed's Clarida: All the FOMC agrees economy is in a good place
Clarida on CNBC
- There is a range of views on the committee right now
- We will act as appropriate
- Will take decisions meeting by meeting
- Going into October and beyond, we'll go one meeting at a time
- We're going to be very attentive to data and to risks to the outlook
- We clearly have a slowing global economy
- There are some deflationary forces in the pipeline
- Negative factors have been worsening since the start of the year
- Global growth has been worsening
- Not surprised US economy is resilient
- Economy has done well this year
- I think a lot of the flattening of the US yield curve was money flowing in to take advantage of higher yields
- Higher US rates are symptom of strength, not weakness
- Quarterly tax payments and Treasury bond sales were behind upward adjustment in repos, it was larger than expected
- The US is much less sensitive to oil shocks now because of US production
- The consumer is in good shape, the savings rate is higher
- "I can never remember a time in my career when the consumer has been in better shape."
- We think its important to put inflation in place policies to meet inflation near target
- We are starting to see inflation trend towards target
Clarida didn't leave anything to chew on. You would think they sent him out there for a reason but it's tough to read anything into this. What message did he want to send? Maybe that the Fed is taking it one meeting at a time?
He was also a bit negative on global growth and hinted at using a risk management approach. That's a bit dovish but it's a small signal to take.