FED: Chicago Fed Pres Evans (FOMC voter) is at Columbus Economic Development...
4. May 2015 23:25:11
FED: Chicago Fed Pres Evans (FOMC voter) is at Columbus Economic Development
Board, repeats dove stance and case for liftoff in '16: "inflation is too low,
and I expect it will be so for some time. Based on this forecast, and the risks
to the outlook, I think the FOMC should refrain from raising the federal funds
rate (our traditional short-term interest rate policy tool) until there is much
greater confidence that inflation one or two years ahead will be at our 2
percent target. I see no compelling reason for us to be in a hurry to tighten
financial conditions until then." Fed is hitting employ targets. But "it likely
will not be appropriate to begin raising the federal funds rate until sometime
in early 2016. Economic activity appears to be on a solid, sustainable growth
path, which, on its own, would support a rate hike soon. However, the weak
first-quarter data do give me pause, and I would like to see confirmation that
they are indeed a transitory aberration.