Covid-19 biggest threat to Fed mandate ‘in our lifetimes’ – Clarida

Richard Clarida
Richard Clarida
Britt Leckman

The Covid-19 pandemic poses the biggest threat to the Federal Reserve’s ability to maintain low unemployment and stable prices “in our lifetimes”, its vice-chair Richard Clarida said on May 22.

Clarida said he expects the economic shock to be disinflationary both during the lockdown phase and recovery.  Unemployment will remain elevated this month but will begin to decline in the second half of the year, he said.

“While the Covid-19 shock is disrupting both aggregate demand and supply, the net

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