Feds Clarinda speaks and Yahoo finance
- US Outlook very very positive and could hit 7%
- Most recent employment report highlighted near-term uncertainty in labor market
- CPI number for April very unpleasant surprise
- Baseline case remains for transitory inflation
- If upper pressure proves persistent Fed would act to bring it down
- Pace of labor market improvement will pick up
- Will take time to get ClearCase of how demand and supply will balance in the economy
- There will come a time in upcoming meetings where the Fed can discuss scaling back the pace of asset purchases. That is not the focus now
- Scaling asset purchases will depend upon the flow of data
- Reopening the economy is putting some upward pressure on inflation
- Fed needs to acknowledge there is a risk case on both sides of inflation
- Fed is more outcome-based than outlook base
- Current data consistent still with well anchored inflation expectations
- Putting a lot of weight on inflation expectations
- Important to look at wages, productivity, along with employment and labor participation.
- Does not look at crypto as a substitute for money or a store of value or medium of exchange.
- Thinks financial stability risks are now manageable
