Economics
Fed’s Richard Clarida Questions Whether Market Really Expects a Cut
- Fed vice chairman calls economic fundamentals ‘strong’
- Too soon to judge impact of coronavirus, Clarida says
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Federal Reserve Vice Chairman Richard Clarida took issue with suggestions that investors expect the central bank to cut interest rates in the middle of this year as he called the economy fundamentally sound.
While trading in federal funds futures imply a reduction, Clarida said that such readings are affected by technical factors and noted that separate surveys of Fed watchers show they don’t expect a cut.