Federal reserve policymakers do not have their minds about where interest rate policy is headed, they are unfolded, central bank vice chairman Richard Clarida said Friday.
With the Fed less than two weeks away from
"Looking ahead, monetary policy is not on a preset course, and the committee wants to proceed on a meeting-by-meeting basis to assess the economic outlook, as well as the risks to the outlook, and it will act as appropriate to sustain growth, a strong laboratory market, and a return of inflation to our symmetric 2 percent objective, "
The Federal Policy Open Market Committee has approved two reductions this year, bringing its benchmark overnight lending rate to 1
Following Fed's cut, Fed Chair Jerome Powell has been selected as the move as a "midcycle adjustment."
Clarida said that while the Fed is intent on keeping growth going, the views are currently positive.
"The US economy is in a good place, and the baseline outlook is favorable," he said, while noting that the US 11th year of economic expansion "as a slowdown in business investment, exports and manufacturing."
"Global growth estimates continue to show signs of dislocation "he added."
Committee members at the September meeting indicated they would not see any additional cuts this year or in 2020, to each other by the next two years. Markets strongly disagree, with current pricing indicating a long-run funds rate around 1.24%, or helped the FOMC's projection of 2.5%.