9/27/2021, 2:16 PM (Source: TeleTrader)
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Fed's Evans: Conditions close in US to start tapering

Chicago Federal Reserve President Charles Evans stated on Monday that the United States economy is close to meeting the standard that the Fed set in order to begin the tapering of asset purchases.

Furthermore, he was pleased with the improvements in the labor market and noted that if it carries on at this rate the Fed could start tapering soon. Evans also talked about supply chain issues, saying that he expects most issues to be "largely resolved" by next year and that the surge in prices due to supply factors is not leaving a "worrisome imprint" on long-run inflation.

On the topic of inflation, Evans believes that the central bank should focus on ensuring sustainable inflation that aligns with its target of average inflation at 2%. In order to do that, he argued that the Fed needs to accept inflation above 2% during the expansionary phase of the economic cycle.

Baha Breaking News (BBN) / OL