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The Federal Reserve’s highly accommodative policy will be appropriate for some time to come, Chicago Federal Reserve Bank President Charles Evans said on Thursday. “Outcome-based forward guidance for interest rates, bond-buying could be beneficial,” Evans further added, as reported by Reuters.

Additional takeaways

“It’s important that future policy actions are true to the principles in the new Fed framework.”

“More fiscal relief is needed.”

“Long way to go before the US economy is back to normal.”

“Economic activity is being suppressed until coronavirus is controlled.”

“Reintroducing restrictions on big gatherings, taking steps to protect the elderly would help substantially.”

“Partisan politics threatens fiscal action, posing a significant downside risk to the economy.”

“Expecting a late-2022 return to the pre-crisis level of economic activity if the virus is better controlled and fiscal support is provided.”

“Seeing US unemployment at 9% at the end of 2020, between 5% and 5.5% at the end of 2022.”

“It will be some time before inflation reaches the Fed’s 2% goal.”

“One year of lost schooling would have a lasting economic toll.”

Market reaction

The US Dollar Index largely ignored these remarks and was last seen gaining 0.25% on a daily basis at 92.87.

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