Fed's Clarida: Fed needs to be attuned and attentive to incoming data on inflation

Federal Reserve's Vice Chairman Richard Clarida said on Monday that his baseline outlook is for economic growth of "perhaps 7%" in 2021, as reported by Reuters.

Additional takeaways

"The US economy is in a very fluid period."

"April employment report was very disappointing."

It may take more time to reopen a $20-trillion economy than to shut it down."

"The Fed needs to be attuned and attentive to incoming data on inflation to ensure it is transitory."

"If data threaten to put inflation expectations higher, the Fed would act."

"Baseline view is that achieving maximum employment will not put undue pressure on prices."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen posting small daily losses at 90.25.