More from Fed's Clarida: changes in asset markets
More from Fed's Clarida: changes in asset markets and other financial conditions, on a sustained basis, need to be taken into account in monetary policy, said the Fed VC. But he's uncomfortable with the Fed getting too deeply into influencing asset prices and feels the later rounds of QE were less effective with higher potential costs. That said, he wouldn't rule out quantitative easing from the Fed toolkit. Clarida views forward guidance as an effective tool, but it depends on how far a central bank is from its goals. Presently he views the Fed as at its price stability goal. Clarida seems fairly flexible and thoughtful about the Fed's policy goals and toolkit, perhaps with some sensitivity to market signals as a former bond fund staffer. Yields meanwhile have hunkered down into the final 7-year leg of the auction series this week.