The vice-chair of the Federal Reserve Board, Richard Clarida, has dismissed fears that US inflation rates would run out of control. Speaking to the Institute of International Finance on October 12, Clarida said “stagflation is not my baseline case”.

The vice-chair, whose term on the Board of Governors ends in January, said the economic situation does not resemble that of the 1970s. He noted that monetary policy then made numerous “mistakes”.

Clarida echoed recent Federal Open Market Committee