Fed's Evans (dove, FOMC 2014 alternate): Fed is in no hurry to raise interest rates, Fed has no intention of reducing accommodation in an economy featuring high unemployment and low inflation
- Unemployment should fall to 6% or a bit lower, inflation to rise to 1.5% by the end of 2015.
- The very low level of inflation despite accelerating growth and easy monetary policy is worrying and puzzling.
- Tapering QE asset purchases was a rebalancing of the Fed's policy mix, not a reduction in accommodation.
- Labor market has improved somewhat, but the unemployment rate is still well above a more normal rate of 5.25%.
- Fed has all the tools it needs to manage risk.