Fed's Evans speaking on Bloomberg: Thinks the neutral rate has moved down

Author: Greg Michalowski | Category: Central Banks

Chicago Fed President Evans speaking on Bloomberg TV

He says:
  • he thinks the neutral rate probably has moved down
  • the Fed has engineered accommodative policy with the 3rd cut
  • hard to be sure just how accommodative Fed policy is now
  • inflation has been on the light side and below the Fed's 2% goal
  • it is important for Fed to be clear what it means by symmetry on its 2% inflation objective (so tell us?)
  • He would be comfortable if inflation rises to 2.5% (so he told us)
  • it is very difficult to generate inflation in the current environment
  • he does not think enough could be achieved with negative interest rates in the United States
  • expansion in balance sheet is not QE, it is just providing liquidity

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