Federal Reserve’s New Vice Chairman Cautiously Backs Further Rate Increases

Sustained stock market turmoil would need to be part of the Fed’s policy decision making, Clarida says

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

WASHINGTON—Federal Reserve Vice Chairman Richard Clarida, in his first public remarks since taking office last month, said some further gradual increases in the federal funds rate would be appropriate.

“I supported the FOMC’s [Federal Open Market Committee] decision last month to raise the target for the federal funds rate to a range of 2 to 2.25 percent,” he said Oct. 25 at the Peterson Institute for International Economics, a Washington-based think tank. “If the data come in as I expect, I believe that some further gradual adjustment in the federal funds rate will be appropriate.”