For release on delivery 11:30 a.m. EDT (8:30 a.m. PDT) May 3, 2019  Models, Markets, and Monetary Policy  Remarks by Richard H. Clarida Vice Chair Board of Governors of the Federal Reserve System at “Strategies for Monetary Policy,” a Hoover Institution Monetary Policy Conference Stanford University Stanford, California  May 3, 2019  It is an honor and a privilege to participate once again in this annual Hoover Institution Monetary Policy Conference.
One important channel through which changes in the prices of oil and of other forms of energy unequivocally influence the economy is through their effects on the profitability of non-energy corporations. This effect is particularly important because a stabilization of profit margins and cash flow will be critical to an eventual firming of capital investment.