Comments from the Chicago Fed President:
- Expects unemployment at 4.5% a year end "still a long way to go"
- Expects 7% GDP growth this year and 3% next
On growth forecasts, economists are beginning to shift some of this year's growth to 2022 as bottlenecks persist. The current thinking is more like 6% this year and 4% next year.
- It will take more than just a couple of months to sort out the timing on the taper
- Tapering too early could undercut Fed objectives
- Expects to see substantial further progress later this year
- Still nervous that low interest rate environment of last many years means that it will be tough to meet inflation objective