Fed Evans says its critical that the Federal Reserve ‘sees through’ temporary price increases

Chicago Federal Reserve Bank President Charles Evans

  • says he is optimistic on the economic outlook, but inflation is ‘far too
    low’
  • sees US GDP growing 5% to 6% this year; 2% to
    3% in 2022, 2023
  • sees US unemployment close to 3.5% by the end of
    2023
  • inflation will not be back to goal until the mid-2020s
  •  says his forecast assumes additional fiscal
    package of half Biden’s proposed $1.9 trln
  •  says Fed is committed to using all available
    tools
  • he expects inflation to rise temporarily
    this spring, but to end the year around 1.5% to 1.75%
  •  ‘reasonably confident’ of meeting max employment
    goal over the next three years; more worried on inflation goal
  • critical to ‘look through’ temporary price
    increases, not even think about adjusting policy
  • ‘I see us staying the course for a while’

You’ll recall only a couple of weeks ago many Fed officials were floating the QE ‘taper’ idea. Fed Chair Powell kicked some ass though and we will not getting that from any of them for a while. 

Chicago Federal Reserve Bank President Charles Evans
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