Fed's Clarida: Can certainly see Fed announcing tapering later this year

Fed Vice Chair Richard Clarida said on Wednesday that he can certainly see the Fed announcing tapering later this year, as reported by Reuters.

Additional takeaways

"Would support announcing a moderation in asset purchases later this year."

"Tapering and raising interest rates are completely separate decisions."

"The threshold metrics for liftoff are serving the Fed well."

"The Fed has no plans to surprise anyone on tapering."

"Soft landings are something all central bankers aspire to; certainly feasible with the existing Fed toolkit."

Market reaction

The greenback preserves its strength against its major rivals following these remarks. As of writing, the US Dollar Index was up 0.17% on the day at 92.22.