Chicago Federal Reserve Bank President Evans speaking with media

  • Says he sees the US jobless rate at 9.5% at end of 2020, 6.5% at end of 2021 in baseline outlook
  • says his more pessimistic forecasts are 'equally' likely
  • says monetary policy is 'about where it can be,' ball is in congress' court on economy
  • sees 'aggregate demand trouble brewing' without extension of fiscal supports like jobless benefits
  • Won't need to raise rates unless inflation heads to 2.5%

On that final bullet point, the Fed is not taking a pre-emptive approach to raising rates to head off inflation. Not that that is particularly relevant right now, but it is a change in approach from the Bank.