Richard Clarida

Richard Clarida
Richard Clarida
Born	May 18, 1957 (age 69); Herrin, Illinois, U.S.
Occupation(s)	Economist, academic
Years active	1988–present
Known for	Vice Chair of the Federal Reserve (2018–2022), dynamic stochastic general equilibrium models, international monetary economics
Notable work	Research on monetary policy, exchange rate dynamics, interest rate behavior

Richard Harris Clarida (born May 18, 1957) is a prominent American economist who held the position of the 21st Vice Chair of the Federal Reserve between 2018 and 2022. He stepped down on January 14, 2022, to resume his teaching duties at Columbia University for the spring semester. Clarida holds the title of C. Lowell Harriss Professor of Economics and International Affairs at Columbia and has acted as a Global Strategic Advisor for PIMCO from 2006 until September 2018, and resumed this role in October 2022. He is recognized for his influential work on dynamic stochastic general equilibrium models and international monetary economics. Additionally, Clarida served as Assistant Secretary of the Treasury for Economic Policy and was honored with the Treasury Medal. During the COVID-19 crisis, he supported the perspective that inflationary pressures were temporary.

Education

Clarida completed his Bachelor of Science degree in economics at the University of Illinois, graduating with Bronze Tablet distinction. He then pursued graduate studies at Harvard University, earning both a Master of Arts and a Doctor of Philosophy. In October 2018, he was honored with the College of Liberal Arts and Sciences Alumni Achievement Award from his undergraduate institution.

Academic career and research contributions

Since 1988, Clarida has been part of Columbia University's faculty, specializing in economics and international affairs while holding the C. Lowell Harriss Professorship. Between 1997 and 2001, he served as chair of Columbia’s Economics Department. Prior to this, he was affiliated with Yale University's Cowles Foundation.

His scholarly work centers on dynamic stochastic general equilibrium modeling, a fundamental framework in macroeconomics and monetary policy analysis. Collaborating with Jordi Galí and Mark Gertler, Clarida demonstrated that contemporary monetary policy operates according to a forward-looking Taylor rule, distinguishing it from the approaches seen in the 1970s.

Clarida has an extensive publication record covering topics such as monetary policy, exchange rate dynamics, interest rate behavior, and international capital movements. He regularly delivers presentations to leading central banks including the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan. Following the 2008 financial crisis during a period of subdued inflation, he introduced in 2014 the notion of a "new neutral" interest rate (r*), forecasting its decline from pre-crisis levels above 4% to approximately 2%.

Other professional achievements

In his capacity as Assistant Secretary for Economic Policy at the U.S. Treasury, Clarida provided counsel to Treasury Secretaries Paul O'Neill and John W. Snow on matters such as economic strategy, global economic outlooks, capital flow trends, corporate governance issues, and U.S. debt maturity structures. His exemplary service earned him the Treasury Medal in 2003.

Clarida has offered consultancy services to organizations including Credit Suisse First Boston and Grossman Asset Management. From 2006 through 2018, he was a Global Strategic Advisor at PIMCO and was appointed managing director in 2015; he rejoined PIMCO as managing director and Global Economic Advisor in October 2022. He is also affiliated with the Council on Foreign Relations.

He led the NBER Project focused on G7 Current Account Imbalances and served as co-editor of the NBER International Macroeconomics Annual from 2004 to 2018. In March 2024, Clarida was honored with the Whitehead Award by the Museum of American Finance for Distinguished Public Service and Financial Leadership in recognition of his significant contributions to government service and economic leadership.

Federal Reserve

On April 24, 2018, President Donald Trump nominated Clarida to replace Stanley Fischer as Vice Chair of the Federal Reserve. The Senate confirmed his appointment on August 28, 2018, with a vote of 69–26, and he officially took office on September 17, 2018.

Controversial trading

On February 27, 2020, just one day prior to Fed Chair Jerome Powell unveiling the Federal Reserve's economic measures addressing the COVID-19 pandemic, Clarida shifted between $1 million and $5 million from a bond fund into the equity-based PIMCO StocksPlus fund. A spokesperson for the Fed explained that this was a scheduled portfolio adjustment similar to an action previously disclosed in April 2019. However, on October 4, 2021, Senator Elizabeth Warren called for an investigation by the Securities and Exchange Commission to determine if Clarida’s trades constituted insider trading. An amended disclosure revealed that Clarida had sold shares of the same stock fund three days before repurchasing them, prompting scrutiny over the timing of these transactions.

Clarida announced his resignation on January 10, 2022, effective January 14, which was two weeks ahead of his term’s official conclusion. His resignation statement did not mention the trading allegations. In July 2022, the Fed's Inspector General cleared Clarida of any misconduct.

Personal life

Clarida was raised in Herrin, Illinois. He married Polly Morgan Barry in 1989.

In 2016, he released Time No Changes, a thirteen-track album featuring his original compositions, lyrics, and vocal performances.

References

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