The Federal Reserve is willing to overshoot on inflation and should be clear that a 2.5% inflation for some time is likely in the cards if it’s doing its job right, Chicago Federal Reserve Bank President Charles Evans said on Wednesday, as reported by Reuters. Additional takeaways “It’s probably a bit ambitious to think there will be $1 trillion in fiscal help.” “Will keep rates where they are until full employment, inflation gets to 2% and overshoots.” “Fiscal policy support and improved public health safety are key to recovery.” “An absence of fiscal support would mean unemployment rate would not fall as much.” “It is unbelievably important to exceed 2% inflation for some time.” “Fed has indicated it will keep rates current level until inflation is sustainably at 2% and confident on track to exceed 2%.” “Fed’s framework makes clear it will do a lot of things to make sure inflation will rise.” “Setting of monetary policy is adequate now, will pivot to greater accommodation when needed.” “When additional bond purchases become important, no doubt Fed will make them.” Market reaction The US Dollar Index retreated slightly following these comments and was last seen gaining 0.22% on the day at 94.18. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Coronavirus update UK: 6,178 new cases confirmed on Wednesday FX Street 2 years The Federal Reserve is willing to overshoot on inflation and should be clear that a 2.5% inflation for some time is likely in the cards if it's doing its job right, Chicago Federal Reserve Bank President Charles Evans said on Wednesday, as reported by Reuters. Additional takeaways "It's probably a bit ambitious to think there will be $1 trillion in fiscal help." "Will keep rates where they are until full employment, inflation gets to 2% and overshoots." "Fiscal policy support and improved public health safety are key to recovery." "An absence of fiscal support would mean unemployment rate would not… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.