VC Clarida: Wouldn't Characterize Change in SOMA Purchases As Op Twist

Fed Vice Chair Clarida says on BBG TT that in steering monetary policy through the pandemic recovery, the Fed will be "be more outcome based and less outlook based", echoing comments by the rest of the Fed leadership in recent weeks.

• Re Fed's "substantial further progress" definition for meeting the conditions required to taper bond purchases: "It's actual progress...hard numbers on the labor market and prices...we're early on in this year...as we go through the year, as the data comes in, as we release our SEP based on incoming data, we will have a sense of where we are on that incoming progress... we will communicate that."
• Notes US twin current account / fiscal deficits "Not a concern now, to me."
• Re NY Fed SOMA chief Lorie Logan's comments Thurs on asset purchase tweaks, including buying more 20-Yr Tsys, Clarida says Logan was "restating essentially what has been our policy for some time now, as we are purchasing Tsys, we are buying on secondary market, and want them to match maturity profile. As Treasury changes issuance patterns, our buying changes. So no change in Fed policy." When asked whether this constituted an Operation Twist]; he said, "I would not characterize this as Operation Twist."
• Notes that there could be temporary imbalances in the economy as the country re-opens, with supply/demand bottlenecks. And that while the 900k+ jobs gained last month was "welcome", there is still a hole in the labor market.