May 30, 2019
NEW YORK – The U.S. economy is in “a very good place,” but policymakers stand ready to adjust policy if there are signs of a persistent shortfall in inflation or if other developments show risks to the economy, a top Federal Reserve official said on Thursday.
“The U.S. economy is in a very good place, with the unemployment rate near a 50-year low, inflationary pressures muted, expected inflation stable, and GDP growth solid and projected to remain so,” Fed Board of Governors Vice Chair Richard Clarida said in remarks prepared for delivery in New York.
Meanwhile, multiple signs point to interest rates being in the right place and an economy as close to the Fed’s goals of maximum employment and stable prices as it has been in 20 years, he said.
The Fed has kept rates on hold this year within a 2.25-2.50% range as markets have increasingly bet that their next move may have to be a cut given tepid inflation pressures and risks from a U.S.-China trade skirmish.
(Reporting by Trevor Hunnicutt; Editing by Chizu Nomiyama)