Economics
Clarida Says Economy Facing Lengthy Recovery Amid Uncertainty
- Rate liftoff based on economy, not calendar: Fed vice chair
- Faster recovery would mean earlier liftoff, slower means later
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Federal Reserve Vice Chair Richard Clarida said the U.S. economy faces a long and uncertain recovery from the Covid-19 pandemic, and requires continued support from monetary and fiscal policy.
“It will take some time to return to the levels of economic activity and employment that prevailed at the business cycle peak in February, and additional support from monetary -- and likely fiscal -- policy will be needed,” Clarida said Monday in a speech to an online event hosted by the American Bankers Association. “The economic outlook is unusually uncertain.” His prepared remarks reprise a speech he gave Oct. 14.