Fed's Clarida: Committed to using all available tools including large-scale asset purchases

The Federal Reserve is committed to using all available tools, not just funds rate and forward guidance but also large-scale asset purchases, to achieve its goals, Federal Reserve's Vice Chairman Richard Clarida said on Monday, per Reuters.

Additional takeaways

"Large-scale asset purchases are providing substantial support to the US economic recovery."

"Fed will continue to monitor developments and assess how asset purchases can best support achieving its objectives."

"Under the new framework, maximum employment would not be assessed on the unemployment rate alone."

"It would also take into account other measures such as labour force participation and prime-age employment-to-population ratios."

"Policy will not tighten solely because the unemployment rate has fallen below any particular econometric estimate of its long-run natural level."

"New framework represents an evolution, not a revolution."

Market reaction

The US Dollar Index largely ignored these remarks and was last seen losing 0.05% on the day at 92.65.