Fed's Evans: Inflation is too low and has been so for quite some time
|In an essay published on the Federal Reserve Bank of Chicago's website, Charles Evans explained his rationale for his dissent at the December 2017 FOMC meeting.
I did not share the majority’s view that the balance of evidence favored a rate increase.
Real activity in the U.S. is on a solid footing, which by itself would support a further adjustment in policy.
Inflation, however, is too low and has been so for quite some time.
I am concerned that persistent factors are holding down inflation, rather than idiosyncratic transitory ones.
I am concerned that too many observers have the impression that our 2 percent objective is a ceiling that we do not wish inflation to breach.
I believe that leaving the target range at 1 to 1-1/4 percent at the current time would have better supported a general pickup in inflation expectations.
Many analysts think the drop in core inflation this past spring was probably transitory.
Waiting a while longer before raising rates would have given us a chance to see whether or not that was true.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.