Fed's Clarida: All the FOMC agrees economy is in a good place

Author: Adam Button | Category: Central Banks

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.
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