Speaking to reporters in the annual interview in Chicago, Chicago Fed President Charles Evans said economic headwinds mean cutting rates further could be reasonable, per Reuters. “On the basis of low US inflation alone, the July interest rate cut was justified, and more policy accommodation needed,” Evans explained.
The US Dollar Index extended its slide on Evans’ comments and was last down 0.25% on the day at 97.33. Below are some additional quotes.
“Trade negotiations mean volatility, we have to be paying attention.”
“Could also argue that risk management calls for more accommodation.”
“Sees ‘mid-cycle adjustment’ as Fed now aiming for 50 basis points below neutral rate, rather than 50 bps above.”
“Shift from prior aim at restrictive policy will help mitigate headwinds.”
“Sees long-run neutral rate as 2.75%, could be lower now because of headwinds.”
“Looking at data, business commentary to determine whether more accommodation needed.”
“Took note of overnight rate cuts in Asia, will be digesting everything that’s going on.”
“Still expects 2.25% US GDP growth this year.”
“Labor market still looks good; a slowdown would pose risks to growth.”
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