9/23, 2:27 PM (Source: TeleTrader)
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Rates likely to remain near zero till inflation reaches 2% - Fed's Clarida

Vice Chairman of the Federal Reserve Richard Clarida (pictured) claimed on Wednesday that the central bank is likely to keep its interest rates "near zero percent" until the inflation hits 2%.

Clarida asserted that consumer prices need to spend some time above 2% to "offset time spent below it," adding the inflation is expected to reach the mark in three years.

The US economy will likely need additional financial support as "there is still a deep hole given high joblessness and risks to small businesses." However, the economy has made "a lot of progress" since the reopening of the country and it is heading towards an "impressive return to low unemployment" that remains one of the Fed's main goals, he underscored.

Breaking the News / GA