Chicago Federal Reserve Bank President Charles Evans
- says he is optimistic on the economic outlook, but inflation is 'far too low'
- sees US GDP growing 5% to 6% this year; 2% to 3% in 2022, 2023
- sees US unemployment close to 3.5% by the end of 2023
- inflation will not be back to goal until the mid-2020s
- says his forecast assumes additional fiscal package of half Biden's proposed $1.9 trln
- says Fed is committed to using all available tools
- he expects inflation to rise temporarily this spring, but to end the year around 1.5% to 1.75%
- 'reasonably confident' of meeting max employment goal over the next three years; more worried on inflation goal
- critical to 'look through' temporary price increases, not even think about adjusting policy
- 'I see us staying the course for a while'
You'll recall only a couple of weeks ago many Fed officials were floating the QE 'taper' idea. Fed Chair Powell kicked some ass though and we will not getting that from any of them for a while.