Chicago Fed President Charles Evans said, “our employment mandate is within sight”, but “achieving our inflation goal may prove more difficult.” He added that “policy is likely on hold for some time.”
Evans added that pre-pandemic economy with unemployment rate at 3.5% couldn’t even generate 2% inflation. hence, risk of overheating is “remote”.
Additionally, “I would not be concerned about inflation moving persistently too high unless we saw some quite outsized movements in financial market pricing at the longer maturities or in survey-based measures of inflation expectations,” he said.
