Fed Vice Chair Richard Clarida maintained his view that the US economy is “in a good place in terms of lower unemployment rate and the inflation rate a little bit below our 2% objective”. Also, the baseline outlook “continues to be a positive one”. That is, the committee “sees growth at or slightly above trend, sees the unemployment rate remaining low and the inflation rate rising gradually toward 2%.”
Though, he also noted that with the Beige Book survey, “we are hearing increasing references and mentions of uncertainty about policy, and particularly uncertainty about the outlook for trade negotiations, having a potential impact on business investments”.
Clarida also noted uncertainties from trade, global growth and business investments. Also, his fellow central banks saw stronger case for policy easing relative to just two months again. He reiterated Fed’s stance that “we will certainly act as appropriate to put in place policies that sustain the economic expansion, and the strong labor market and price stability.”
