The strength of the US economy and the soft inflation outlook demand a gradual policy normalisation, Federal Reserve vice-chair Richard Clarida said on November 27.

The mixed economic outlook makes rate-setters ever more data dependent, Clarida told an audience in New York.

“Raising rates too quickly could unnecessarily shorten the economic expansion,” said Clarida. “Moving too slowly could result in rising inflation and inflation expectations down the road that could be costly to reverse, as