Remarks by Chicago Fed president, Charles Evans
- US economy close to meeting substantial progress bar to start taper
- If job market continues to improve, that bar will likely be met soon
- Inflation does not yet satisfy Fed's overshooting criterion
- Long-run inflation expectations likely somewhat below target
- Fed should focus on producing sustainable inflation that aligns with 2% goal
- Expects most supply issues to be "largely resolved" next year
- Full remarks
That will put a lot of emphasis on the coming jobs report on 8 October. Besides that, he's also making a clear distinction that tapering may not necessarily mean liftoff for rates as the Fed still views the latest push in prices to be more transient.
Well, I reckon that's more to the fact that they don't want to spook markets all too quickly. I mean, baby steps. Taper now. Hike later.
