WASHINGTON, Nov. 27 (Xinhua) -- The Vice Chairman of the U.S. Federal Reserve (Fed) Richard Clarida on Tuesday underlined the importance of "data dependent" in Fed's policy-making process regarding further moves of the interest rate.
At a public event in New York, Clarida said that the two most important parameters needed to conduct monetary policy are the rate of unemployment and the riskless real rate of interest, which reflect employment status and price stability respectively.
Clarida stressed that the Fed's monetary policy strategy "must find a way to combine incoming data and a model of the economy with a healthy dose of judgment--and humility."
Speaking of the current federal funds rate, Clarida noted that "it is much closer to the vicinity" of the riskless real rate of interest.
"How close is a matter of judgment," he said.
To be "data dependent," Clardia said that he will keep an open mind on his current estimations "if incoming data on future inflation and unemployment diverge materially and persistently from my baseline projections today."
Besides, Clarida noted that risks in U.S. economy have become more symmetric and less skewed to the downside than three years ago.
On Sept. 26, the Fed raised the target range for the federal funds rate to 2-2.25 percent. It is largely expected to hike once more before year-end.