FX

Fed’s Clarida: Expected inflation path consistent with Fed’s new framework

It will take some time for the US economy and the job market to return to pre-crisis peak, Federal Reserve’s Vice Chairman Richard Clarida said on Thursday, as reported by Reuters.

Additional takeaways

“Fed will support the recovery until the job is well and truly done.”

“US economy is much more resilient than forecast a year ago.”

“True unemployment rate is closer to 10%.”

“Expecting inflation to move up this year, to return to 2% or perhaps somewhat above in 2022, 2023.”

“Expected inflation path is entirely consistent with the Fed’s new framework.”

Market reaction

The US Dollar Index showed little to no reaction to these remarks and was last seen gaining 0.15% on the day at 92.66.