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Fed Vice Chairman Clarida Backs Gradual Rate Hikes

  • Sees risks less skewed to the downside than three years ago
  • Clarida says he’d adjust policy outlook if prices above goal
Richard Clarida
Richard ClaridaPhotographer: Andrew Harrer/Bloomberg
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Federal Reserve Vice Chairman Richard Clarida said the central bank’s gradual approach to interest-rate hikes is appropriate as U.S. monetary policy gets closer to its optimal longer-run setting.

“As the economy has moved to a neighborhood consistent with the Fed’s dual-mandate objectives, risks have become more symmetric and less skewed to the downside than when the current rate cycle began three years ago,’’ Clarida said at The Clearing House and Bank Policy Institute’s annual conference in New York on Tuesday.