Fed’s inflation fight isn’t over yet, says former No. 2 at central bank

Market Extra

Exclusive: Richard Clarida, now with Pimco, anticipates that the Fed will retain most of its independence from politics in terms of monetary policy but could lose some regulatory power

Last Updated: June 17, 2025 at 1:21 p.m. ET
First Published: June 17, 2025 at 10:04 a.m. ET

Richard Clarida was the Federal Reserve vice chair from 2018 to 2022 and now serves as a global economic adviser at Pimco. Photo: MarketWatch photo illustration/Pimco

The Federal Reserve’s work to safeguard against inflation isn’t over yet, according to the former No. 2 at the U.S. central bank.

The cost of living has been edging closer to the Fed’s 2% annual target, but upward pressure on prices could still arise in the months to come from President Donald Trump’s tariffs.