Bloomberg Talks PIMCO Global Economic Advisor Richard Clarida Talks US Economy, Monetary Policy
Feb 9, 2026
Richard Clarida, former Federal Reserve vice chair and PIMCO Global Economic Advisor, talks policy and the US outlook. He discusses Fed decisionmaking, the role of models versus judgement, expectations for future interest rates, and how geopolitical and market risks could create nonlinear surprises. He also covers Treasury-Fed relations and why tariffs had muted macro effects.
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Teaching Philosophy At Columbia
- Richard Clarida recalls teaching at Columbia and resisting AI use in class sessions through Socratic presentations.
- He emphasizes in-class presentations to ensure students engage rather than rely on AI.
Rethinking The Fed–Treasury Relationship
- A new Treasury-Fed accord would likely focus on the Fed's balance-sheet composition rather than restoring 1951-style yield caps.
- Discussions include whether the Fed should hold more T-bills and fewer long-term Treasuries and MBS.
Prepare For Gradual Rate Cuts
- Expect incoming Fed leadership to pursue rate cuts if economic data evolve as many officials anticipate.
- Richard Clarida expects cuts toward roughly a 3% policy rate if the labor market and inflation behave as forecasted.
