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“There is a need for additional fiscal support to state and local governments,”  Chicago Federal Reserve Bank President Charles Evans said on Thursday, as reported by Reuters.

Regarding the inflation outlook, Evans said that he thinks that 2% inflation could be reached by 2023. 

“Federal support is important to fill holes; we are still a ways from where economic growth is sustainable on its own,” Evans further argued. “We could see one-off price increases in building materials or from supply constraints, but I don’t think it will be inflationary.”

Market reaction

The US Dollar Index ignored these comments and continues to consolidate its daily gains around 89.80, gaining 0.3%.