Fed's Evans: Low U.S. inflation is a serious policy outcome miss
|Chicago Fed President Charles Evans is out on the wires, via Reuters, arguing that the low U.S. inflation was a serious policy outcome miss.
- Real U.S. economy is performing well, inflation remains stubbornly below 2 pct
- GDP growth in 1st quarter was weak, but appears to have been transitory
- Need to demonstrate a strong commitment to hitting inflation target sooner than later
- June rate hike was justified by improvements in real economy
- It remains to be seen if there will be 2 rate hikes total this year, or 3, or even 4
- Slow removal of accommodation is necessary to achieve 2-pct inflation goal in timely fashion
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