Fed's Evans: Economy is about 91% recovered, still have a ways to go
|Chicago Federal Reserve President Charles Evans says that the US economy is about 91% recovered, still have a ways to go and that the recovery is uneven.
He said disadvantaged sectors of the US economy have a long slog to get back and that the disadvantaged sectors of the US economy have a long slog to get back.
In additional comments, Evans said that under good circumstances, he sees the US unemployment rate at 5.5% end of 2021
and that fiscal policy could play an important role in whether the economy might stall.
Evans says no level of employment is too high and he says they don't want to prematurely short-circuit expansion unless inflation is unacceptably high.
Evans said there is no real appetite for negative rates at the Fed.
Market implications
The US stock market is banking on a fiscal stimulus but the talks will be suspended until after the election, which is now only 14 days away if there is not at least the terms on the table by the end of today.
However, there are mixed messages, but the markets are banking on something by the end of the day..
Uncertainty over the fiscal stimulus weighed on Wall Street's main indexes on Monday, however, the S&P 500 is bid on the session today and rising by 1.18% at the time of writing.
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