Fed’s Clarida: Additional fiscal support will likely be needed for US recovery

“If financial stability is threatened maximum employment or inflation goals, the Fed would have to take it into account,” Federal Reserve’s Vice Chairman Richard Clarida told Bloomberg TV on Wednesday, as reported by Reuters.

“Additional fiscal support will likely be needed for the US recovery,” Clarida added. “The economy has made a lot of progress but it’s still in a deep hole given high joblessness, risks to small business.”

Market reaction

The US Dollar Index clings to its daily gains after these comments and was last seen rising 0.16% on the day at 94.12.