Former Fed Vice Chairman: Rate hikes are over
Former Fed Vice Chairman Clarida said in an interview that he thought in September that the Fed might raise interest rates once more in this cycle, but has now changed his mind because the bond market can do some work for the Fed.
Clarida said the Fed is now highly dependent on data because its policy has entered restrictive territory. At the same time, he believes that the Fed's soft landing prospects are feasible, but there are obvious risks: stubborn inflation, as well as so far resilient consumption and economic headwinds, it is expected that further rate hikes in the Fed's dot plot may be challenged in the future.
Former Fed Vice Chairman Clarida said in an interview that he thought in September that the Fed might raise interest rates once more in this cycle, but has now changed his mind because the bond market can do some work for the Fed.
Clarida said the Fed is now highly dependent on data because its policy has entered restrictive territory. At the same time, he believes that the Fed's soft landing prospects are feasible, but there are obvious risks: stubborn inflation, as well as so far resilient consumption and economic headwinds, it is expected that further rate hikes in the Fed's dot plot may be challenged in the future.