The Consumer Price Index (CPI) number in April, which arrived at 4.2% on a yearly basis, was a “very unpleasant surprise,” Federal Reserve’s Vice Chairman Richard Clarida told Yahoo Finance on Tuesday, per Reuters.
“US outlook is very very positive and growth could hit 7%.”
“Most recent employment report highlighted near term uncertainty in labor market.”
“Baseline case remains for transitory inflation; if upward pressure proves persistent Fed would act to bring it down.”
“Pace of labor market improvement will pick up.”
“Going to take time to get a clearer case of how demand and supply will balance.”
“If upside risks take hold Fed will be able to offset that.”
“May be a time in upcoming meetings when the Fed can discuss scaling back purchases; depends on data flow.”
“Fed needs to acknowledge risks still exist on both up and down sides.
US Dollar Index inched higher and was last seen losing only 0.03% on the day at 89.80