(Reuters) – The Federal Reserve is far from meeting its dual mandate of targeting inflation and maximum employment and there is more the central bank can do to support the economy, Fed vice chair Richard Clarida said on Friday.
“We’ve taken very aggressive, proactive actions,” Clarida said during an interview with Fox Business. “There’s more that we can do, I think there’s more that we will do.”
Clarida said there is no limit to the Fed’s potential purchases of Treasury securities or mortgage-backed securities, and he reiterated the view shared by other Fed officials that negative interest rates would not be appropriate for the U.S. Despite low inflation, officials are not thinking about lowering the Fed’s 2% target, Clarida said.
(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)
