Chicago Fed President Charles Evans said there is no “strict numerical formula” to determine the time of “liftoff” of interest rate, and “how long to keep policy accommodative after liftoff”. He added that the work on inflation is “unlikely to be complete when we first begin to raise rates”. That means, Fed will “maintain accommodative monetary conditions until our inflation averaging goal is met”. Even though,
Evans also said Fed has the “capacity to do more asset purchases” but he currently doesn’t see the need. At some point, Fed will need to give explicit guidance on future pace or type of asset purchases. Nevertheless, “that’s not where we are, and it’s probably going to be the Spring until I have a better sense”
