Bloomberg (gated) with comments from the prior vice-chair of the Federal Reserve Richard Clarida.
Free to speak his mind now I guess.
- Fed will need to raise short-term interest rates to at least 3.5% to bring surging inflation under control
- “Expeditiously ‘getting to neutral’ will not be enough this cycle to return inflation over the forecast horizon back to the 2% longer-run goal,”
- “The funds rate will I believe ultimately need to be raised well into restrictive territory, by at least a percentage point”
Comments extracted from remarks prepared for delivery to a Hoover Institution conference on Friday. More at that gated link above.