WASHINGTON, Sept 20 (Reuters) - The U.S. economy is in a good place but risks mean that the Federal Reserve will decide the course of interest rates from one meeting to the next, Fed Vice Chair Richard Clarida said on Friday.
“The economy is in a good place but in the 11th year of an expansion there are also some risks,” Clarida said in an interview with broadcaster CNBC. “We are going to take this meeting by meeting...and as we get into the October meeting and beyond we’ll take it on a case by case basis but again, we will act as appropriate to sustain a strong labor market and price stability.”
In a split decision, the Fed voted on Wednesday to cut borrowing costs by a quarter of a percentage point to a range of 1.75% to 2.00% after a similar cut in July.
Fed Chair Jerome Powell called the move “insurance” against the impact of slowing global growth and trade policy tensions on the U.S. economy.
Reporting by Lindsay Dunsmuir; Editing by Angus MacSwan