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Clarida Sees 2021 Taper Announcement, 2023 Fed Rate Liftoff

  • Clarida says risks to his inflation outlook are to the upside
  • Fed vice chair warns delta variant a downside risk to economy
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Clarida Sees Fed Rate Liftoff in 2023
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Federal Reserve Vice Chairman Richard Clarida said the central bank is on course to pull back on the massive support it is providing to the pandemic-damaged economy, starting with an announcement later this year that it is paring bond purchases and moving on to a liftoff in interest rates in 2023.

While acknowledging that the rapid spread of the Delta virus posed a downside risk to the economy, Clarida on Wednesday painted an upbeat picture of the outlook in the coming years as growth powers ahead and inflation falls back from its recent elevated levels.