Search ForexCrunch

“Hard to escape the conclusion that trend growth in the U.S. is likely less than 2%,” argued  Chicago Fed President Charles Evans in a recently delivered speech.

Key quotes (via Reuters)

  • Fed needs to plan for likelihood it will hit the zero bound of interest rates more frequently in future.
  • Inflation ‘makeup’ strategies could require short-run price increases “well above” 2%, raises possible issues of whether Fed will be believed to follow through.