Chicago Fed Pres. Charles Evans speaks in Indianapolis

Comments from Chicago Fed Pres. Charles Evans:

  • Labor market is now vibrant.
  • Gone to a point where we are pausing on policy
  • Economy is doing remarkably well
  • We are at a good setting for monetary policy
  • Fed should be averaging 2% inflation
  • It is a good time to watch the data
  • Expects employment growth to eventually tail off toward 100,000 jobs a month

With the Fed dot plot forecasting no change in policy and 2020, the comments from Evans are congruent with that view. Evans is not a voting member on the FOMC in 2020.

He adds:

  • He is personally worried inflation is too low
  • We need to be willing to go well past 2% inflation
  • Importantly get inflation up to Fed's 2% goal

These comments are congruent to the Fed Chair's comments last week when he said that it would take a "significant and persistent" rise in inflation for the Fed to move rates higher.