Fed's Evans: Policy is likely on hold for some time

Eren Sengezer FXStreet

Chicago Federal Reserve Bank President Charles Evans reiterated on Wednesday that he expects the US Federal Reserve's monetary policy to remain on hold for some time, as reported by Reuters.

Additional takeaways

"'Quite a way to go before reaching goals."

"Very optimistic about economy's growth prospects."

"Employment mandate is within sight."

"Achieving inflation goal may prove more difficult."

"Pandemic has magnified longstanding inequalities, may leave unfortunate longer-lasting marks."

"Long way to go before economic activity returns to the pre-pandemic vibrancy."

"Unemployment much more positive than just a few months ago."

"Base case is virus will be much less of public health concern by the second half but there are downside risks."

"Uncertainty over the speed of return to the normal, impact of fiscal policy."

"Expecting some further pickup in inflation in coming months."

"Risk of upward inflation spiral remote."

"Need firming in inflation expectations to achieve inflation goal."

"Would not be concerned about persistent high inflation unless saw outsized movements in financial market pricing at longer maturities or in survey-based inflation expectations."

"Need an accommodative policy for some time to meet policy goals."

"Conditions for 'substantial further progress will not be met for a while."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen trading flat on the day at 91.28.

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.

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