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