Fed’s Evans: See unemployment going below 4% before too long

Haresh Menghani FXStreet

Adding to his earlier comments, Chicago Fed President Charles Evans noted that the unemployment rate could go below 4% before too long.

Key quotes:

The unemployment rate could go to 3.5% and be consistent with inflation still struggling to reach 2%.
Still, early days to think that recent inflation increases will work their way into inflation expectations.
Fed would have probably done what it did with asset purchases even without the new framework.

Market reaction:

The US Dollar Index held on to its modest intraday gains just below mid-93.00s, or one-month tops and was supported by the ongoing surge in the US Treasury bond yields/prospects for an early Fed rate hike.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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