One of the most “aggressive” executives of the Federal Reserve went on to admit that inflation has persisted for longer than he expected.
“Now, I’m going to admit that it lasts longer than I expected. I expected the supply chain to be more resilient than we’ve seen,” said Chicago Fed Chairman Charles Evans.
By the middle of next year, the Fed will know if the supply chain is working and if prices are going to return. “There is more uncertainty than I expected a few months ago,” Evans said.
He stressed that the economy had a good momentum, although it derailed a bit from the spread of the Delta mutation in the third quarter.
He said a sudden cessation of bond purchases by the Fed would not have a good impact, as he reiterated the stance that the central bank will hold until the middle of next year to complete tapering and then begin to think about when it is appropriate. time to raise interest rates.
He added that he is not as nervous as house prices now, as the fed should head into a subrime crisis.
“I am more confident that we do not have the same type of leverage in housing products,” he said.
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Source From: Capital
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