Fed's Evans (dove, non-voter): sees less headroom to raise rates; overshooting inflation target might be appropriate - comments in Chicago
- pickup in wage growth is only modest
- because real interest rates are lower, it means real monetary policy is not as accommodative as it may appear
- sees relatively good near-term growth outlook
- good news is that inflation is closer to the target
- Expects 2-2.5% growth in H2
- there's an arithmetic constraint on potential US gorwth; now sees growth at 1.75-2%
- Fed should be more explicit about what economic data it needs to raise rates further
Q&A: inflationary pressures are hard to find
- reiterates wants to get rates higher so Fed has room to cut rates in next recession