Truth bomb time. Ex-Fed Reserve Vice Chair Clarida says rates must rise to at least 3.5%

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.

fed vice chair clarida
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