vox, june 10, https : / / voxeu. org / article / growing - use - local - currencies - japanese - trade - within - asia. see gita gopinath, emine boz, camila casas, federico j. diez, pierre - olivier gourinchas, and mikkel plagborg - møller ( 2019 ), “ dominant currency paradigm, ” nber working paper series 22943 ( cambridge, mass. : national bureau of economic research, march ). - 8conclusion returning to the united states, i would like to wrap up with a brief discussion of our monetary policy decision this week. at our meeting earlier this week, the federal open market committee ( fomc ) lowered the target range for the federal funds rate by 1 / 4 percentage point, bringing the range to 1 - 1 / 2 to 1 - 3 / 4 percent — the third such reduction this year. 8 as chair powell noted in his press conference, the committee took these actions to help keep the u. s. economy strong in the face of global developments and to provide some insurance against ongoing risks. the policy adjustments we have made since last year are providing — and will continue to provide — meaningful support to the economy. the economy is in a good place, and monetary policy is in a good place. the policy adjustments we have made to date will continue to provide significant support for the economy. since monetary policy operates with a lag, the full effects of these adjustments on economic growth, the job market, and inflation will be realized over time. we see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, a strong labor market, and inflation near our symmetric 2 percent objective. of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly. policy is not on a preset course, and we will be monitoring the effects of our policy actions, along with other information bearing on the outlook, as we assess, at each future meeting, the appropriate path of the target range for the federal funds rate. see board of governors of the federal reserve system ( 2019 ), “ federal reserve issues fomc statement, ” press release, october 30, https : / / www. federalreserve. gov / newsevents / pressreleases / monetary201910

for release on delivery 1 : 00 p. m. edt november 1, 2019 the united states, japan, and the global economy remarks by richard h. clarida vice chair board of governors of the federal reserve system at the japan society new york, new york november 1, 2019 i appreciate this opportunity to speak today at the japan society, a respected institution dedicated to studying, advocating, and expanding interactions between the united states and japan. 1 while the society ’ s remit is broad and includes arts, culture, and education, i will, perhaps not surprisingly, focus my remarks on our two economies. japan is an important economic partner of the united states, and our economies are linked through trade in goods and services as well as capital flows that affect interest rates and other aspects of financial markets. through these channels, developments in japan can affect economic conditions in the united states, and vice versa. more broadly, beyond bilateral linkages, economic conditions in united states and japan are tightly linked to global economic developments, and today i will discuss several of the global factors that are relevant to the outlook for both economies. first, i will review the current u. s. outlook and some key global risks to that outlook that we are monitoring at the federal reserve. i will next elaborate on the channels through which global factors affect domestic economic conditions in the united states and, in some cases, also japan. i will conclude with some remarks about the monetary policy decision we announced on wednesday. u. s. outlook by many metrics, the u. s. economy is in a good place. the current economic expansion, now in its 11th year, is the longest on record, and the economy continues to advance at a moderate pace, with real gross domestic product ( gdp ) growth running at 2 percent over the past year and 1. 9 percent in the most recent quarter. growth has been these remarks represent my own views, which do not necessarily represent those of the federal reserve board or the federal open market committee. i would like to thank joseph gruber for his assistance in preparing this speech. - 2supported by the continued strength of household consumption, underpinned, in turn, by a thriving labor market. the unemployment rate is near a half - century low, real wages are rising, and workers who had earlier left the labor force are returning to find jobs. there is no sign that cost - push pressures are putting excessive upward force on price inflation, and to me, plausible estimates