Fed's Evans: Will likely take years to get inflation up to 2% on average
The US economy should prepare for a period of very low interest rates as well as the expansion of the central bank's balance sheet, Chicago Federal Reserve Bank President Charles Evans said on Friday, as reported by Reuters.
Additional takeaways
"Downward bias to inflation expectations from proximity to zero lower bound is a serious problem."
"It will likely take years to get US inflation up to 2% on average; the policy will be accommodative for a long time."
"Interest rates will stay low for long period, Fed will likely continue asset purchases for a while as well."
"Fed should not rush to raise rates unless inflation threatens to be uncomfortably high."
"Fed policy should not put benefits of strong labor market at risk if inflation is quiescent."
Market reaction
The US Dollar Index largely ignored these comments and was last seen losing 0.2% on the day at 89.75.
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