Chicago Fed president Evans speaking
Chicago Fed president Charles Evans (voting member in 2021) is speaking at BKD financial services symposium.
He says:
- Expects a good market momentum for US economy well into 2022
- Optimistic about 2022
- labor market will continue to improve next year as more people come back into the labor force
- Expects unemployment to go below 4% maybe like 3.5% next year
- We are looking at some pretty substantial increases in labor costs
- Supply chain issues will last longer into 2022 then would like but am optimistic
- There's a long way to go before we get to price inflation getting embedded through expectations
- We positioned ourselves quite well
- By mid-2022 can assess the employment situation, fiscal situation, inflationary pressures and how much we should adjust stance of monetary policy
- Rate hikes could begin next year
- Rate hikes could also begin in 2023 depending on inflation
- We may have to lean into slightly more restrictive policy than was expected six months ago
- Policy adjustments can be relatively gradual
- Expect will be making adjustments to monetary policy in 2022 and 2023
- September Fed economic projections are a little stale
- Am more open-minded to adjustments in monetary policy in 2022
- I don't worry about two vibrant the labor market, but must measure it against if inflation is running too hot
Evan's comments are a notch up toward more hawkish
