Pimco's Clarida Says Fed Could 'Ratchet Down Rates' Next Year

The transcript discusses Powell's projection of achieving 2% core inflation by 2025 and the possibility of rate cuts next year, even if inflation remains above target. Pemco's baseline view suggests that inflation could fall below 3% next year, prompting the Fed to reduce rates. The discussion highlights the Fed's data-dependent approach, similar to other central banks.

How does the speaker view the Fed's approach compared to the ECB and other central banks?

What is the significance of being data dependent for the Fed's decision-making?