Evans speaks with reporters

  • If inflation rises faster than expected, it's a sign of a stronger economy that can withstand more hikes
  • Says he will be reviewing his estimate of the neutral rate
  • Change in fiscal environment could give rise to higher neutral rate
  • Expect higher deficits to lead to steeper yield curve
  • 2.5% inflation not a problem for Fed goals but won't provide accommodation if inflation heading to 3%

We hear so often from Evans that he's rarely a market mover but he's a good guy to listen to and get a sense of what the Fed's thinking about. I'm not so sure that hoping deficits will steepen the yield curve is a very good strategy.