Chicago Fed President Charles Evans said the US economy is doing “extremely well”, the “fundamentals are strong, the labor market is doing terrific.” He added that “I spent quite a long time indicating that I think inflation needs to get up to 2 percent, and here we are.” Evans also noted “by setting the policy rate just a little above neutral, that will continue to keep things going for quite some time” referring to the “very well” state the economy is in.

Though, he also indicated that “Long-term inflation expectations are now, in my opinion, a little bit too low.” Therefore, ” we don’t have to raise the funds rate as restrictively as we may have in the past.”. And, “if the outlook continues to be as good as it is, at a slightly restrictive level and then hold there for quite some time until we begin to see signs that we need to make an adjustment.”

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