Chicago Federal Reserve Bank President Charles Evans said on Thursday that he expects the US economy to grow by 7% this year and 3% next year, as reported by Reuters.
“Inflation has picked up stronger than expected.”
“Expecting core PCE to be 3% at end of this year.”
“Unusual rise in inflation pressures to be transitory, expecting 2.1% core PCE inflation in 2022.”
“Have a good amount of confidence inflation will be lower but need to watch wages.”
“We could be facing much less inflation in ’22 than many people think, though a lot of uncertainty.”
“Unless inflation really above what’s appropriate, should not raise rates unnecessarily.”
“Need more things to be met on employment to reach ‘substantial further progress’ bar for taper.”
“We need to find a way to be comfortable with above-2% inflation without sparking worries Fed will be more restrictive.”
“Before tapering, want to see we are on track to lower unemployment.”
“If inflation looks to be more persistent, then we may need to modify stance earlier.”
“If unemployment is at 4.5% by end of the year, would guess some adjustment in stance would be appropriate.”
“Will take more than just a couple of months to sort out timing on taper.”
The US Dollar Index showed no immediate reaction to these remarks and was last seen gaining 0.2% on the day at 92.55.
