Chicago Fed President Charles Evans on recession

Chicago Fed President Charles Evans on recession

Is a recession inevitable at this point? Chicago Federal Reserve Bank President Charles Evans believes “the economy is doing solidly.” He says inflation is weaker than would otherwise be expected in an era of tight labor markets. Modest growth in the labor force is straining the current economic expansion. “Things have changed a lot since the mid-2000s,” Evans says. Does he expect a cut in Fed-controlled interest rates? “I’d have to be expecting some sort of negative shock, which at the moment I don’t see.” Evans says the Fed’s reputation for independence from politics is tempered by its obligation to be accountable and explain its actions clearly. “We have to pay attention to the data and pay attention to our mandates,” he says. “In the meantime, people are going to criticize us.”

 

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