Former Vice Chairperson of the Federal Reserve: The Federal Reserve is expected to cut policy rates cautiously

Richard Clarida, global economic adviser to Pimco and former vice chairperson of the Federal Reserve, said in a note that the Fed appeared set to cut policy rates in the near future, though with a cautious approach. Markets were not disappointed by Powell's much-anticipated speech at the annual Jackson Hole symposium last week, and the Fed's introduction of a revised monetary policy framework did not surprise Fed watchers. In the longer term, the Fed reaffirmed its commitment to its dual mandate while providing only minor clarifications to its monetary policy framework.