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Federal Reserve’s Charles L. Evans has added additional comments to the prior that 2.5% inflation would be welcome, whereas 3% would not be a problem either.

Evans said that they can make the 2% inflation objective work, especially with fiscal help.

He also said that studies suggest a $15/hour Federal minimum wage would not have an overall negative effect. 

This follows comments where he stated, ”Unemployment, now at 6.7%, could be back down near its pre-pandemic level of 3.5% by the end of 2023.”

  • Fed’s Evans: Optimistic on economic outlook, but inflation is ‘far too low’

Market implications 

The market is convinced that the world economy is on track to recovery but monetary policy has work to do which should keep the US dollar hamstrung while attempts to break key resistance:

DXY daily chart