Further comments from Charles Evans
- It will take quite some time for inflation to normalise
- Were not expecting a pot hole like that for Q1 growth
- Fundamentals in US are getting better
- Still optimistic on 2.5% - 3% growth in second half of year
- It ought to be the case that US has better growth this year
- Sees US inflation hitting 2.0% by about 2018
- Fed will decide on a meeting by meeting basis
- Doesn't see Fed giving more guidance on rate increases
- ECB policy is welcome and beneficial
If there's one thing I've picked up on recently is that some Fed members are mentioning that there will be no language or guidance to tip us off when they decide to raise rates. On one hand it gives them the room to not raise until they feel comfortable enough but it also means that a hike will come out of the blue. That's going to increase expectation at every meeting.
