Fed Board of Governor Clarida speaks to Chamber of Commerce
- Sees asset market pricing as consistent with expectations for robust growth
- Do not expects sustained upward inflation pressures
- Fed as tools to achieve, keep inflation consistent with price stability mandate
- Robust demand will generate sustained price pressure
- Both inflation and employment well below the Fed's goals
- Monetary policy cannot eliminate variation in inflation. It can keep expectations anchored
- Fiscal policy support should accelerate pace of progress toward Fed goals him him
- One reason that pre-– crisis wage gains did not push up inflation was productivity growth
- Too soon to tell how productivity growth will change post Covid
