Fed Should Try to Offset Headwinds If They Persist, Clarida Says

Federal Reserve Vice Chairman Richard Clarida said the central bank should be ready to adjust monetary policy if headwinds to the economy from financial markets or global growth prove persistent, suggesting caution about moving ahead with interest-rate increases.

“Growth prospects in other economies around the world have moderated somewhat in recent months, and overall financial conditions have tightened materially,’’ he said in the text of a speech late Thursday in New York. “If these crosswinds are sustained, appropriate forward-looking monetary policy should seek to offset them to keep the economy as close as possible to our dual-mandate objectives of maximum employment and price stability.’’