Economics
Fed's Clarida Backs Gradual Rate Hikes Even Amid Trump Pressure
- New vice chair says Fed closest to dual goals in a decade
- Policy outlook for 2019 hinges on how inflation behaves
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The Federal Reserve’s newly installed No. 2 official backed the U.S. central bank’s plans for some further gradual interest-rate increases and suggested policy makers won’t change course in response to political pressure or recent stock market jitters.
With the Fed “as near as it has been in a decade” to its goals of full employment and price stability, and monetary policy still bolstering the economy, “I believe some further gradual adjustment in the policy rate range will likely be appropriate,” Vice Chairman Richard Clarida said Thursday in a speech at the Peterson Institute for International Economics.