Fed's Clarida: Low unemployment rate not enough to trigger tighter policy

The US Federal Reserve is committed to using its full range of tools to help ensure a robust economic recovery, Federal Reserve's Vice Chairman Richard Clarida reiterated on Friday, per Reuters.

Additional takeaways

"Recent COVID-19 surge poses a downside risk to very near-term US economic outlook."

"Vaccine news means prospects for the economy in 2021 have brightened, the downside risk to outlook has diminished."

"Low unemployment rate in itself will not be enough to trigger tighter monetary policy."

"Fed's tools are providing powerful support to the economy."

"It will take some time for economic activity and employment to return to pre-crisis levels."

Market reaction

The US Dollar Index edged slightly lower after these remarks and was last seen gaining 0.1% on the day at 89.92.