On Tuesday evening, Federal Reserve Vice Chairman Rich Clarida will be speaking at the Federal Reserve Bank of Minneapolis Spring 2019 Institute Conference.
Given the Federal Open Market Committee’s (FOMC) upcoming release of its March meeting minutes on Wednesday, Clarida’s speech will carry more weight. The FOMC’s sharp dovish pivot in the March meeting caught some market participants by surprise. At the end of March, Clarida mentioned during a speech in Europe that the Fed cannot ignore overseas spillover effects. Investors will be looking for more clues on both the Fed’s near-term and long-term outlook on international risks and the overall economic outlook in the U.S.
“Vice Chair Clarida has represented the more dovish side of the FOMC over the past several months, and he should continue to sound very cautious on the global outlook and stress patience given muted inflation. He may suggest allowing a significant overshoot before hiking again. If asked, he is likely to concede there are rate cut scenarios, but not that likely in his view,” TD Securities wrote in a note on Friday.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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