Bloomberg Talks PIMCO's Rich Clarida Talks Fed Path
Jun 12, 2025
Richard Clarida, global economic advisor at PIMCO and former vice chairman of the Fed, shares his expertise on the shifting dynamics of the economy. He discusses the U.S. dollar's status as a global reserve, despite recent weaknesses, and highlights central banks' growing interest in gold. Clarida delves into the widening economic gap in the U.S. and its implications for the Federal Reserve's monetary policy. He also addresses the complexities of Fed leadership and the significance of dissent in shaping effective economic strategies.
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Dollar's Dominance Amid Fluctuations
- The U.S. dollar remains the dominant reserve currency due to lack of viable alternatives.
- However, the dollar's value can fluctuate, including current downward trends against many currencies.
Gold's Enduring Value in Reserves
- In 2014-2015, a sophisticated Asian official investor chose gold over inflation-indexed securities because gold "doesn't default."
- Central banks are returning to holding gold, a reserve asset for hundreds of years.
Tariff Impact Is Complex But Limited
- U.S. tariffs of recent scale and scope are unprecedented in decades and complex in economic impact.
- So far, tariffs haven't caused immediate inflation rises or major economic slowdown.
