Fed: It will be appropriate at some point to hold rates to assess the impact on the economy – Charles Evans

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At some point, it will be appropriate to slow the pace of rate hikes and hold rates for a while to assess the impact on the economy.Chicago Fed President Charles Evans said on Tuesday, Reuters reported.

Additional comments

The reduction in the financial balance is equivalent to 35-50 basis points of monetary policy tightening“.

My outlook is roughly in line with the Fed’s median assessment of rates at 4.25-4.50% by the end of 2022.; 4.6% by the end of next year.”

“I don’t see recession figures in the softening of the labor market.”

“Our measures will result in below-trend growth and a softening of the labor market“.

“Not restoring price stability would cost much more.”

“Many of the risks to the Fed’s outlook appear to be to the downside.”

“The Fed must be vigilant and adjust policy if changing economic circumstances call for it“.

“I expect modest increases in GDP in the second half of this year.”

“There are signs that the unusual strength of labor demand may be easing; supply chain problems are improving.”

“I expect inflation to cool substantially in the next two years.”

“The labor force participation rate is not moving away from the long-term trend.”

“Measures of long-term inflation expectations remain well anchored.”

Source: Fx Street

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