Fed’s Evans: If economy deteriorates more, would be willing to do more

Dhwani Mehta FXStreet

The Federal Reserve Bank (Fed) would be ready to do more if the economy deteriorates further, Chicago Fed President Charles Evans said early Tuesday.

Additional quotes

Would be surprised if Fed raises rates before 2023, even if recovery is stronger than expected.

Fed should not try to fine-tune inflation overshoot.

Fed should get core inflation up to 2.5%.

US economy needs more fiscal support; of the view, we should go big.

Does not look like virus surge is getting strongly in the way of economic momentum.

Market reaction

The US dollar index consolidates the previous surge to five-day highs of 92.80, now trading 0.13% higher at 92.52.

The vaccine-optimism-induced rally in Wall Street stocks checked the advance in the greenback. The US dollar caught a fresh bid-wave on upbeat US Markit PMIs.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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