Evans says that at the moment inflation is quite weak, would like to see it closer to 2%.
- Fed is missing on employment and inflation mandates
- Fed to keep buying assets until job market gains
- Fed needs a little more time to assess policy effects
- We need confidence that labor market improvement will continue
Basically a ‘wait-and-see’ approach which fits nicely with what most people expect from the Fed. It indicates that upcoming economic data will steer the ship.