Fed Vice Chairman says U.S. economy is “in a good place”. Clarida pledges the Fed will be “nimble” if course correction needed.
In his first public remarks since a U.S. airstrike that killed a top Iranian general last week, Federal Reserve Vice Chairman Richard Clarida said U.S. monetary policy is “in a good place” despite “significant global growth headwinds.”
Without mentioning the recent market turmoil stemming from a ramp up, then ramp down, of hostilities with Iran, Clarida said on Thursday the central bank stood ready to respond to any emerging challenges. The U.S. economy seems to have dodged, for now, last year’s threat of a recession that would have cooled housing and mortgage demand.
While Clarida didn’t cite Iran in his remarks, he referenced the possibility of “developments” changing the central bank’s stance, which is the Fed’s way of calming the markets without being specific.
The Fed “will be monitoring the effects of our recent policy actions along with other information bearing on the outlook as we assess the appropriate path of the target range for the federal funds rate,” he said in a speech to the Council on Foreign Relations in New York. “Of course, if developments emerge that, in the future, trigger a material reassessment of our outlook, we will respond accordingly.”