Fed Vice-Chair Clarida says central bank won’t raise interest rates from near-zero until it sees 2% inflation for months

  • Federal Reserve Vice Chairman Richard Clarida told Bloomberg on Wednesday that the central bank will not raise interest rates until it sees 2% inflation for at least a few months and full employment is reached. 
  • “We’re not going to even begin to think about lifting off,” until then, said Clarida. 
  • He added that he is projecting a “pretty impressive return” to very low unemployment in the US within three years.

Federal Reserve Vice Chairman Richard Clarida told Bloomberg that the central bank won’t raise interest rates until it sees 2% inflation for at least a few months and full employment is reached.

“We’re not going to even begin to think about lifting off, we expect, until we actually get observed inflation — and we measure it on a year-over-year basis, equal to 2%,” he said. “Also we want our labor market indicators to be consistent with maximum

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