Fed's Clarida says central bank has tools to avoid deflation - BBG

The coronavirus shock to the economy won't push the United States into a damaging bout of deflation given the Fed's response and power to do more, Fed vice chair Richard Clarida said on Monday.

"Demand is impacted very adversely. On the net it is disinflationary. I don't think it is deflationary. I think we have the tools to keep the economy out of deflation," Clarida said in an interview on Bloomberg television.