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.