Comments from the Fed’s Evans in a Q&A in Chicago:

  • I think the Fed can be very patient
  • If inflation were to pickup we would need tighter policy, but we know how to deal with that
  • Other other side, the risk is very different and more “deadly”
  • The costs are so much higher on the low inflation side
  • I am optimistic about the state of the recovery
  • 2.00-2.25% is probably the trend growth of the United States

Evans is a major dove so there’s nothing too surprising here. I’m listening to the speech so I’ll have updates.

More:

  • Doesn’t see inflation returning to Fed’s goal for 3-4 years