Richard H Clarida: Data dependence and US monetary policy

Speech by Mr Richard H Clarida, Vice Chairman of the Board of Governors of the Federal Reserve System, at The Clearing House and The Bank Policy Institute Annual Conference, New York City, 27 November 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

I am delighted to be speaking at this annual conference of the Clearing House and the Bank Policy Institute. Today I will discuss recent economic developments and the economic outlook before going on to outline my thinking about the connections between data dependence and monetary policy. I will close with some observations on the implications for U.S. monetary policy that flow from this perspective.

Recent Economic Developments and the Economic Outlook

U.S. economic fundamentals are robust, as indicated by strong growth in gross domestic product (GDP) and a job market that has been surprising on the upside for nearly two years.