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Fed vice chair Clarida: “Some further” rate increases warranted

Writer's picture: AIM TeamAIM Team

New Federal Reserve vice chair Richard Clarida said he’d support an increase in interest rates.

In his debut speech as the Fed’s second in command and the most recent appointee by President Donald Trump, Clarida said the economy showed signs of continuing to motor along, making it appropriate to continue to gradually raise interest rates that remain “accommodative,” or encouraging of spending and investment.

“U.S. monetary policy remains accommodative,” Clarida said in remarks at the Peterson Institute for International Economics. “If the data come in as I expect, I believe that some further gradual adjustment in the federal funds rate will be appropriate.”

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