Clarida: We Will Not Refrain from Interfering with Inflation

Speaking after the inflation data that saw the peak of 13 years in the USA, Fed Vice Chairman Richard Clarida said, “We will not refrain from interfering with inflation.”

US Federal Reserve (FED) Vice Chairman Richard Clarida stated that the inflation data for April in the USA was a surprise for him and that they would not hesitate to take steps to reduce inflation to the targeted levels if necessary. Answering the questions after his speech at the NABE conference, Clarida said that there may be some imbalances with the reopening of the US economy after the epidemic process, and these imbalances may put pressure on prices. Stating that there is a suppressed demand in the economy, Clarida pointed out that it will take time for the supply to reach this level of demand. In the US, consumer prices rose by 4.2 percent on an annual basis in April. Thus, consumer inflation in the country reached the highest level since 2008. Following the stimulus package of US President Joe Biden and the rising momentum in global commodities, inflation expectations in the country moved upwards.