Fed VC Clarida reiterated the economy is in a "good place
Fed VC Clarida reiterated the economy is in a "good place, and the baseline outlook is favorable," though there are "evident risks." In his comments on the U.S. Economic Outlook and Monetary Policy he also reiterated the Fed will "act as appropriate" and will proceed on a meeting-by-meeting basis, and added that policy is not on a preset course. As to risks, there is the weakening in global growth, disinflationary pressure, and declines in business fixed investment, and the downturn in manufacturing. While he's pretty neutral in his outlook, that he did not really push back against the markets' expectations for another quarter point cut at the end of the month suggests to us he would go along with a consensus vote to trim rates again.