Chicago Fed President Charles Evans recently crossed the wires arguing that being symmetric on inflation was helpful for the Fed’s policy. However, “Policymakers have not clarified what exactly is meant by a symmetric inflation target,” Evans further added.
Key quotes (via Reuters)
- Economy has changed since 1960-1970s inflation because Fed now has less ability to cut rates.
- His outlook sees inflation going above 2%.
Commenting on the policy outlook during an interview with CNBC earlier in the day, Evans said that he was happy to “wait and see” until cost pressures lead to inflation.