By Ann Saphir
(Reuters) – Federal Reserve Vice Chair Richard Clarida said on Wednesday that he’s “bullish” on the outlook for the U.S. economy and sees inflation at the Fed’s 2% goal by year’s end, after what he expects to be a temporary rise above that level before then due to “base effects.”
The Fed’s current monetary policy settings are appropriate now and “for the rest of the year” Clarida said in a virtual appearance before the American Chamber of Commerce in Australia. The biggest risk to the outlook, he said, is the course of the coronavirus.
(Reporting by Ann Saphir; editing by Jonathan Oatis)
