Fed's Evans: Better to wait on bond-buying until unemployment gets closer to 6%
"Doing more bond-buying prematurely wouldn't be as effective," argued Chicago Federal Reserve Bank President Charles Evans on Wednesday and added that it may be better to wait until unemployment rate gest closer to 6%, as reported by Reuters.
Additional takeaways
"Fed may consider adjusting pace, maturity of bond-buying once there's more clarity on the economy."
"Concerned fiscal support will be less than the $500 billion to $1 trillion."
"It looks like the economy is powering through adverse virus outcomes."
"Fed has not induced excess risk-taking beyond what was seen pre-crisis, asset prices reflect optimism."
"Lack of fiscal support would be a headwind to recovery."
"Not expecting any rate hikes through 2023, expecting inflation to reach 2% by then and to overshoot later."
Market reaction
US Dollar Index largely ignored these comments and was last seen gaining 0.26% on the day at 94.22.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
