Trump argues the boom he says is generated by his economic policies are in danger from rising interest rates, but Clarida is unabashedly upbeat about the outlook.
And he said the Fed will make its decisions without regard to President Donald Trump's repeated attacks on the central bank. Before becoming the president he had complained that the bank is moving very slowly in increasing the interest rates.
Questioned on whether he has regrets for having chosen Jerome Powell to succeed Janet Yellen to lead the central bank, Mr. Trump replied: "it is too early to say, maybe".
"We are doing great as a country", Trump says at a press conference in NY.
The fed funds rate target is now 1.75 percent to 2 percent, and that is the rate closely tied to consumer debt, particularly credit cards, home equity lines and other adjustable-rate loans.
Trump made his first public comments signaling dismay about his pick on July 19, when he told CNBC he was "not thrilled" about the Fed's rate increases.
New Federal Reserve vice chair Richard Clarida on Thursday said he'd support "some further" increase in interest rates as the best way to nurse the current US recovery along while guarding against any jump in inflation.
And, even if subtly, the Fed is taking its own pots shots at Trump, noting that the general confidence in growth prospects also faces a few potential obstacles one fiscal policy stimulus starts to wear off. In August, in an interview with Reuters, he demanded the Fed help out on the economy.
The political pressure "will in no way be a consideration as far as I'm concerned", Clarida said.
Federal Reserve Vice Chairman Richard Clarida, in his first major policy speech since being seated at the central bank, said more interest rate increases are likely warranted as the economy continues to gather strength. With regard to unemployment, the Fed expects next year to see it at 3.5-percent, the lowest it's been at any point since 1969.
Combined those factors would allow the Fed to keep interest rates lower than otherwise without risk of inflation, key indicators of which "are not flashing red right now".
Speaking of the monetary policy, Clarida said he believed the Fed's monetary policy "remains accommodative". He feels that this fluctuation in the interest rates will have a negative impact on the economy.
That will serve as "a tailwind for the economy, not a headwind", in conjunction with lower taxes, he said. He can't remove Fed governors, including Powell, except for ill-defined "cause", and the Senate must confirm replacements.
While the reports from the Fed's regional banks reflected a healthy United States economy, with "modest to moderate growth", President Donald Trump's aggressive tariff strategy, which has drawn retaliation from trading partners, is potentially adding fuel to inflation.