Clarida Says Fed Doesn’t Slavishly Follow Market Expectations

Bloomberg | Feb 21, 2020 at 6:30 PM
  • Federal Reserve Vice Chairman Richard Clarida disputed suggestions that the central bank suffers from a “hall of mirrors” problem under which it slavishly follows financial-market expectations for monetary policy.“In my experience this affliction is one the Federal Reserve guards against and does not suffer from,” he said in a speech to be delivered Friday to a monetary policy forum in New York.As the Fed reduced rates last year, some economists questioned whether such action was necessary given