Chicago Fed president Charles Evans speaks in London
- Gradual rate hikes are consistent with achieving Fed's goals
- Must consider new policy frameworks to better fight future downturns
- But unsure if such frameworks would be practical to implement
- US economy is 'firing on all cylinders'
- Trade concerns may hurt investment, housing is soft
- Fed needs plan amid less room to cut rates in the next downturn
- More comfortable with inflation than in the past few years
Once again, nothing new from Evans here but the constant reiteration and reserved confidence of comfort to raise rates still will only help markets slowly price in further a rate hike in December.
Currently, Fed fund rates have priced in a 74.6% probability of a rate hike to come then. Expect that to grow more in the next month as long as the Fed sticks to the current script. In turn, that should at least provide some backing to the dollar as well.
