Fed’s Clarida Acknowledges ‘Much More Than Moderate Overshoot’ of Inflation Target

Federal Reserve Vice Chairman Richard H. Clarida presents his insights on the economic outlook and monetary policy at the Peterson Institute in Washington, on Oct. 25, 2018. Jeremey Tripp/Peterson Institute

Federal Reserve Vice Chairman Richard Clarida said on Nov. 8 that inflation this year has been far higher than the Fed expected, and while he still believes inflationary pressures are transitory and will dissipate “over time,” a longer run of elevated prices would amount to a policy failure on the part of the central bank.

Clarida made the remarks in a speech at a virtual symposium on monetary policy frameworks hosted by the Washington-based Brookings Institution.