5/12/2017, 3:45 PM (Source: TeleTrader)
more TeleTrader news

Evans: Fed should trim balance sheet monthly

Inflation in the United States is still below the 2% rate targeted by the Federal Reserve System, said Charles Evans, head of the central bank's subsidiary in Chicago. Speaking on Friday at a conference in Dublin, this year's voting member of the national monetary policy panel said the time has come to "recalibrate" the process of tightening, including adjustment to the balance sheet, and that it could be cut gradually each month. 

Its normal size in the future will still need to be substantial, and the pace of trimming it will be slow, lasting even up to four years, the Chicago Fed president stated. Evans also said officials haven't "seriously" consider taking rates of interest to negative territory during the financial turmoil in the past decade.

Turning back to prices growth, he underscored there are downside risks and pointed out that wages increase slowly relative to strong employment. 

Baha Breaking News (BBN) / IT