Evans speaks in virtual conversation with members of the media
- Says a difference of a month or two on taper timeline won't matter
- US economic outlook continues to be strong but some uncertainty remains
- Fed likely to meet taper benchmark of 'substantial further progress' later this year
- Says he's perfectly comfortable waiting until there is more progress on employment
- Recent price increases were quite large and there is no sugar-coating how that hurts businesses and households
- Expects some of the price increases to turn around in 2022 and 2023
- Expects inflation around 2.1% next year
- Can't think of a good scenario for hiking before the end of the taper
- No clear playbook for timeline between taper and first hike
There was some speculation that Evans would follow others and hint at a taper in September, or at least a taper announcement in September but he hasn't made a shift here at all. That sets up an interesting September meeting and some intrigue around Jackson Hole later this month. This is a win for the doves and bond bulls. It's a negative for the US dollar on a pushback against the taper narrative, though Evans doesn't exactly sounds like a guy who is ready to go to war about it.
