Federal Reserve Bank of Chicago President Charles Evans spoke earlier on current economic conditions & monetary policy before the Money Marketeers of New York University, in New York:
Q&A now:
- I believe inflation will be 3% or less by 2023
- underlying inflation is currently around 4% to 4.5%
- the short-term neutral rate may be greater than the long-run neutral rate
- if inflation is not responding to tighter policy to the degree needed then "we are going to continue working on it"
- my colleagues and I have been pretty clear when we have said we are going to move the Fed Funds rate towards neutral in an expeditious fashion
- I think the front loading is pretty much in process
- As long as inflation looks like its high and its trajectory is high the FOMC is going to say policy is not restrictive and will keep going
- its time to adjust our balance sheer back to a more normal setting
- I wouldn't say that involves a full round trip in its size
more to come
