The economy is closer to a turning point than it was two months ago, Chicago Fed president Evans says. Non-standard policy must be unwound once the economy is more clearly headed for sustainable growth. The Fed needs tools to shrisk its balance sheet so that policy can be recalibrated, he says
Inflation did not fall as much as feared during the recession and the Fed must be watchful of a rise in inflation expectations as the economy improves.
As we saw over the weekend, it’s all about the exit strategy these days. Glad to see it.
The buck is seeing support from renewed risk aversion. US equities are down 1.25% in early trade. We trade now at 1.3851.
