Chicago Fed President Charles Evans said there is still “quite a long way to go” for the US economy to recovery from the pandemic crisis. He didn’t expect inflation to reach 2% targe4t until late 2022 or even 20223. Hence, “we are not expecting the funds rate to be raised before 2023 – probably late, maybe even 2024 in my opinion,” he said.
He also noted, “in the past the Fed has not put enough weight on valuing getting inflation to 2% and above”. Fed should get core inflation up to 2.5%, and, “I don’t think we should get involved in trying to fine-tune the overshoot…I would be surprised if we were to seek to increase interest rates sooner than 2023, given the objectives that we’ve laid out.”
