Fed officials: inflation target under scrutiny - UOB

Analysts at UOB Group explained that Several Fed officials spoke on Monday, including Chicago Fed President Charles Evans, who said that given the low status of inflation the Fed may need to show its commitment to achieving its inflation target sustainably, symmetrically, and sooner rather than later.

Key Quotes:

"Evans added that this may require undershooting the unemployment rate (and) overshooting the inflation target. St Louis Fed President James Bullard said in a speech Monday morning that low interest rates are likely to be the norm over the next 2 to 3 years, as the US is under a low-productivity growth regime."

"New York Fed President Dudley said regulators have been sharing data they have collected on the changing nature of the US Treasury market and their next step is weighing what transaction level information should be shared with market participants."