Golden Finance reported that former Federal Reserve Vice Chairman Clarida said in a recent interview that although he predicted in September that the Federal Reserve might raise interest rates again during this cycle, he has now changed his view. Clarida believes the bond market can do some work for the Fed, which is now highly data-dependent as its policies move into restrictive territory.
Clarida said the Fed's prospect of a soft landing was feasible, but there were clear risks, such as stubborn inflation and headwinds to a so-far resilient consumption and economy. He predicts that the Fed's plans for further interest rate hikes in the dot plot may be challenged in the future. In this case, the market should remain optimistic and pay close attention to the direction of the Fed's policy.
Clarida said the Fed's prospect of a soft landing was feasible, but there were clear risks, such as stubborn inflation and headwinds to a so-far resilient consumption and economy. He predicts that the Fed's plans for further interest rate hikes in the dot plot may be challenged in the future. In this case, the market should remain optimistic and pay close attention to the direction of the Fed's policy.