Clarida Says Reduction in Trade Uncertainty Would Brighten Economic Outlook
December 13 2019 - 4:18PM
Dow Jones News
By Nick Timiraos
Federal Reserve Vice Chairman Richard Clarida said it was too
soon to judge how a limited agreement to halt the trade war between
the U.S. and China would influence the economy, but any reduction
in policy uncertainty is "obviously a positive for the economic
outlook."
Mr. Clarida, in an interview on the Fox Business Network on
Friday, also played down concerns about softer consumer spending
after a report Friday showed a lackluster start to the holiday
sales season in November.
"The consumer is in great shape," he said, citing a low
unemployment rate, rising incomes and a high personal savings rate.
"The consumer has never been in better shape in my professional
career in aggregate."
Fed officials held interest rates steady at their final meeting
of the year this week and signaled no appetite to raise them
soon.
After lowering rates at their three previous meetings to guard
the U.S. economy from the effects of trade tensions and a global
slowdown, Fed officials on Wednesday indicated comfort with leaving
monetary policy on hold through next year while keeping an eye on
those risks.
"We were just doing textbook monetary policy to provide some
support for the economy in the face of this global slowdown and
muted inflation pressures," Mr. Clarida said Friday.
Write to Nick Timiraos at nick.timiraos@wsj.com
(END) Dow Jones Newswires
December 13, 2019 16:03 ET (21:03 GMT)
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