- Chicago Fed president Evans: Policy is currently about neutral but could be more accommodated if the aim was to lift inflation
Market news
12 July 2019
Chicago Fed president Evans: Policy is currently about neutral but could be more accommodated if the aim was to lift inflation
- Says labor markets seem quite vibrant, drawing in more people
- Fed is still debating what for employment means in current economy
- We should tolerate inflation both above and below 2%
- Currently considers US economy has very solid fundamentals
- Consumer still very strong
- Business investment weaker than expected
- Sees growth for 2019 around 2% which is close to what he regards as sustainable trend
- Business investment has been weaker despite fiscal aid
- Nervous about under running inflation objective
- A couple of rate cuts could lift inflation by 2021
- Framework is adequate as long as policymakers are going to actively push for inflation of 2% to assure target is met symmetrically
- Fed has a lot of inflation-fighting credibility, with expectations firmly anchored
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