Fed's Evans: A couple of rate cuts could lift inflation by 2021
|Chicago Fed President Charles Evans crossed the wires in the last minutes, saying that the monetary policy is currently 'about neutral' but could be more accommodative if the aim was to lift inflation.
The US Dollar Index doesn't seem to be paying any mind to Evans' remarks and was last flat on the day a little above the 97 mark. Below are some key quotes, per Reuters.
"Labor markets seem quite vibrant, Fed still debating what full employment means in current economy."
"Currently considers U.S. economy has very solid fundamentals."
"Consumer still 'very strong'; business investment weaker than expected."
"Sees growth for 2019 at around 2%, close to what he regards as sustainable trend."
"Nervous about underrunning inflation objective."
"Policy is currently 'about neutral' but could be more accommodative if the aim was to lift inflation."
"Part of policy should be to aim to get inflation above 2% for a while to 'ratify' Fed credibility."
"A couple of rate cuts could lift inflation by 2021."
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