Fed's Clarida says rate cuts were 'well timed,' policy likely to remain appropriate

NEW YORK (Reuters) – Federal Reserve Vice Chairman Richard Clarida laid out his optimistic view for the U.S. economy in 2020 on Thursday, saying that last year’s rate cuts were “well timed” and that monetary policy is well positioned for the new year.

Although the unemployment rate is at a 50-year low, the strong labor market is not yet creating pressure for inflation, which he expects to “gradually” approach the Fed’s 2% symmetric target, Clarida said according to prepared remarks to be delivered in New York on Thursday.

“I believe that monetary policy is in a good place and should continue to support sustained growth, a strong labor market, and inflation running close to our symmetric 2 percent objective,” Clarida said. “As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy likely will remain appropriate.”

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