Former Fed Vice Chair Clarida Urges Fed to Clarify Inflation Target After Warsh Hints at Possible Adjustments

Former Federal Reserve Vice Chair Richard Clarida stated that changing the preferred inflation metric without clearly communicating policymakers' objectives could bring uncertainty. Currently serving as Global Economic Advisor at PIMCO, Clarida warned that central banks implementing inflation targeting must clearly define their goals, and that these targets can and may evolve. Clarida concurred with the view of a so-called "K-shaped economy" in the United States, where approximately 60% of Americans own their homes and hold stocks, while the remaining 40% rent and possess little to no equity assets.