Federal Reserve Vice President Richard Clarida said Friday the US economy is strong and interest rate policy is a convenient place to support growth.
Speaking at the Hoover Institution's monetary policy conference at Stanford University, Clarida Fed's latest policy breaker approved "patience" in implementing future interest rate increases, and on data dependency as opposed to being on a preset course.
"The US economy is in a very good place," the central bank officially said in prepared remarks. "Unemployment is 50 years old, real wages are rising in line with productivity, inflationary pressures are subdued and expected inflation is stable."
Along with these conditions, the Fed's benchmark rate at the level is that policy makers consider neutral ̵
Clarida spoke just a few hours after the Ministry of Labor had reported another strong month for job growth, with profitable wage increases rising by 263,000 and unemployment falling to 3.6%, the lowest since 1969. The unemployed, he says, are right around what is considered full employment.
"So with the economy operating at or very close to Fed's dual-mandate goals and with the key rate in FOMC participants' neutral estimates, we can, I think, afford to be data dependent … as we Considering what, if any, further adjustments in our political stance may be needed to maintain our two-mandated goals with maximum employment and price stability, "he said.
Earlier this week, the political decision maker voted for the open open market selection to keep the Funds stable in targeted reach of 2.25% to 2.5%. Fed Mayor Jerome Powell said he did not see the need for interest rate increases or cuts at any time, pointing out that he expects low inflation readings to return to the central bank's 2% target.