The comments, made by Mr. Clarida in an interview on CNBC Tuesday, were his first public remarks since last week’s Federal Open Market Committee meeting. Then, officials left their short-term rate target near zero and pressed forward with asset buying and other support programs for the financial system and broader economy.
In the interview, Mr. Clarida said rates would stay very low “until we’re confident the economy has weathered these events and is on track to achieve maximum employment and price stability.” More broadly for the central bank, “we’re going to continue to be forceful, proactive and aggressive until we’re confident that the economy’s on the road to recovery, especially for main street,” he said.
Mr. Clarida also said the Fed is doing all it can to help the economy navigate the coronavirus crisis. “We’re using our full range of tools, our rates, our balance sheet, forward guidance, and lending facilities to support the economy through this time, and our policies, we think, will be very important in making sure that the rebound will be as robust as possible,” he said.
Mr. Clarida said he is looking for the economy to begin recovery from the coronavirus crisis in the second half of this year, joining with two other central bank officials who offered similar views in separate appearances.