Nonvoting member of the FOMC board this year
Chicago Fed Pres. Richard Evans is on the wires saying
- investments and worker safety are necessary, costly and reduced productivity
- will need to adjust thinking about what sustainable economic growth looks like
- 2nd half return to growth scenario is only a bit more likely than more pessimistic scenarios
- repeats view that US GDP will return to growth in 2nd half after huge Q2 drop
- relaxing stay-at-home measures is bold decision with pretty high risks
- some indication that Fed called fiscal policy is beginning to cushion the pandemic below
- consumer sentiment while still low, has risen a bit recently
- consumer sentiment gains may reflect payments to households under CARES act
- more Fed economic support will likely be needed
- important federal government supports states, municipalities
- don't anticipate using negative rates in the US
- rates will be near 0% for quite some time
- he does not see inflation being a challenge
- with rates low this is the time for the US to go out to borrow to benefit the American people
- we need to to make it easier for businesses and households to make the right decisions for public health
