Chicago Fed President Charles Evans reiterated his stance that interest rate might have to go to a bit restrictive. He said in a CNBC interview that “after many, many years of accommodative policy, which I have supported strongly because inflation’s now up at 2 percent, it’s time to readjust the policy stance at least to neutral.” Then, “let’s see how the economy is performing at that point and then we might have to do a little more after that.”
He further explained that “I would say that with the unemployment rate headed to three and a half percent, we’re in a more normal environment where an accommodative stance of policy, when we’ve got procyclical fiscal policy and a very strong economy, we probably need to be a little bit on the above-neutral side, but I don’t know that we need to be a lot.”
