Clarida says Fed cannot be 'handcuffed' to U.S. market prices

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The U.S. Federal Reserve will consider investors' expectations when they we...

FILE PHOTO - Federal Reserve Vice Chairman Richard Clarida, boards a bus to tour South Dallas as part of a community outreach by U.S. central bankers, in Dallas, Texas, U.S., February 25, 2019. REUTERS/Ann Saphir

- The U.S. Federal Reserve will consider investors’ expectations when they weigh what to do with interest rates, but they will not be “handcuffed” to market prices, a central bank policymaker said on Tuesday. “We’ll look at market pricing,” along with a range of data on how the economy is doing, Fed Board of Governors Vice Chair Richard Clarida told CNBC. “Market pricing can go up and down so we can’t be handcuffed to that.”

Investors are increasingly betting that the central bank will have to cut rates this year as uncertainty about how the United States’ trade conflicts with other countries weigh on growth. Clarida said on CNBC that the U.S. economy is in a “good place” and that U.S. tariffs on Chinese imports have had only a small impact so far.

 

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