Fed's Evans: Fed will pivot to greater accommodation when needed
The Federal Reserve is willing to overshoot on inflation and should be clear that a 2.5% inflation for some time is likely in the cards if it's doing its job right, Chicago Federal Reserve Bank President Charles Evans said on Wednesday, as reported by Reuters.
"It's probably a bit ambitious to think there will be $1 trillion in fiscal help."
"Will keep rates where they are until full employment, inflation gets to 2% and overshoots."
"Fiscal policy support and improved public health safety are key to recovery."
"An absence of fiscal support would mean unemployment rate would not fall as much."
"It is unbelievably important to exceed 2% inflation for some time."
"Fed has indicated it will keep rates current level until inflation is sustainably at 2% and confident on track to exceed 2%."
"Fed's framework makes clear it will do a lot of things to make sure inflation will rise."
"Setting of monetary policy is adequate now, will pivot to greater accommodation when needed."
"When additional bond purchases become important, no doubt Fed will make them."
The US Dollar Index retreated slightly following these comments and was last seen gaining 0.22% on the day at 94.18.