The Federal Open Market Committee will announce Thursday whether it will raise its benchmark fed funds rate for the first time in more than nine years. Fed Chair Janet Yellen has said the committee’s decision remains dependent on how economic data impact the central bank’s employment and inflation targets.
“I think the real issue here is Janet Yellen likes to say she’s data dependent, but data dependence is not a monetary policy,” Clarida told CNBC’s “Squawk Box.”
“You get fluctuations in foreign equities or credit spreads widen here, it’s very hard for the markets to sense what is the reaction function of the Fed, what will be that path?”
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