Fed's Clarida said the global economy has worsened
Fed's Clarida said the global economy has worsened since the July 31 decision, in a CNBC interview, but he reiterate the economy is in a "good place" and is a "bright spot" in the global economy. It's a complex picture that analysts're trying to understand he acknowledged. He does not believe there's a higher than normal probability of recession currently. Some financial indicators are moving in that direction, including the yield curve. But he is not too concerned. He believes the inversion is driven more by foreign events and from the markdown reduction in global growth expectations, than is signaling U.S. growth. He respects the curve but he is not handcuffed to it. But, he will continue to monitor the curve and conditions. He also noted that not all financial indicators are sending warning signals. He expects growth at or above trend for 2020. The Fed VC doesn't sound as though he'd call for an aggressive rate cut at this point, if any easing at all, but there is still a month to go before the September FOMC.