We are in a good place – Charles Evans

Original content:

Having recently sparked a rate hike in 2022, Chicago Fed Chairman Charles Evans said Thursday that we are in a good place (for policy reasons).

Additional comments

No rate hike before the phase-down ends in June, and no change to the phase-down schedule.

Don’t expect a rate increase until 2023 yet, but you may be “completely wrong.”

It is not obvious to me that the rate increase in 2022 is necessary or required, but it could be the case that it is appropriate.

Market reaction

Given the mixed comments from the Fed’s policymaker, which also contrasts with recent words, there is little market reaction to the updates. Still, support for current policy and softer yields help the S&P 500 and Nasdaq close at an all-time high.

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