Fed's Clarida: US outlook very very positive and could hit 7%

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

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