Fed's Clarida says inflation expectations in line with mandate
SAN FRANCISCO, Sept 26 (Reuters) - U.S. inflation expectations are currently in line with the central bank's 2% goal, Federal Reserve Vice Chair Richard Clarida said on Thursday, a remark that suggests he does not see a pressing need for new rate cuts to push inflation back up.
"I myself do judge that U.S. inflation expectations do reside in a range that I consider consistent with our price stability mandate," Clarida said at a conference held at the Federal Reserve Bank of San Francisco which is focused on the trade-offs in a so-called "hot economy."
Fed policymakers cut interest rates last week to a range of 1.75% to 2.00%. They also lowered borrowing costs at their prior meeting at the end of July, moves Fed Chair Jerome Powell has characterized as "insurance" against the risks to the U.S. economy posed by slowing global growth, U.S. trade tensions and moderate inflation.
But Powell has also made plain that the Fed will take further decisions on the path of interest rates on a meeting-by-meeting basis and he, Clarida and several other policymakers have said the economy, powered by robust consumer spending, is in a good place.
The San Francisco Fed conference is part of a series of Fed events meant to feed into a review of the central bank's policy framework.
(Reporting by Ann Saphir; Writing by Lindsay Dunsmuir; Editing by Chizu Nomiyama and Lisa Shumaker)
((Lindsay.Dunsmuir@thomsonreuters.com; +1 202 898 8411;))
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