Fed's Evans: 'Slightly restrictive' policy makes sense; that may mean 50 bps above neutral

Author: Adam Button | Category: Central Banks

Evans on CNBC

  • It's time to readjust policy stance to neutral
  • Says not worried about inflation
  • 'Slightly restrictive' policy makes sense; that may mean 50 bps above neutral
  • Jobless rate heading to 3.5%, need to be above neutral
  • Inflation could go to 2.2%-2.3%
  • Says would like to see wage growth higher
  • Asked if it's time to take away the punch bowl: "I don't think I've said that at all .... on the way to neutral we've still got the punch bowl in play."
  • Asset valuations have been more elevated
  • Higher bond yields have not yet caused him to change his outlook

These aren't exactly dovish comments from a guy who is traditionally a dove.


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