Fed’s Clarida: Focused on inflation expectations

Additional comments from the Federal Reserve's Vice Chairman Richard Clarida continue to cross the wires.

Key quotes (via Reuters)

• As policy moves towards neutral estimates need to be more data dependent, not on pre-set course.
• Focused on inflation expectations.
• Not returning to pre-crisis portfolio size.
• Want to operate with smallest balance sheet possible while still achieving objectives.
• Balance sheet plan very effective, well communicated.
• There are abundant excess reserves.