Although the Fed's Clarida is scheduled to step down at the end of the week (and is under scrutiny for his stock trading), he is on the wires saying:

  • He believes unwelcome surgeon inflation in 2021 will in the end proved to be largely transitory under appropriate monetary policy
  • Inflation as well above what we would consider to be moderate overshoot of Fed's 2% longer run goal
  • Inflation will prove to be transitory once these relative price adjustments are complete and bottlenecks have unclogged
  • Commencing policy normalization in 2022 would be entirely consistent with new flexible average inflation targeting framework
  • Fully reopening the economy is essentially taking longer and has cost more than it did to shut it
  • He continues to believe the underlying rate of inflation in the US economy is hovering close to Fed's 2% longer run objective