Evans Sees Inflation Overshoot in Four Years

President of the Federal Reserve Bank of Chicago, Charles Evans, expects an inflation overshoot after more than three years, Bloomberg reported.

“I expect inflation to slowly improve, reaching 2% on a persistent basis in 2023 and then moderately overshooting 2% over the following few years.”

“We likely have a lot of work ahead of us. And it’s crucial that we acknowledge the magnitude of the job up front to help lessen the temptation to back off the overshoot too early in the process.”

“My forecast assumes that additional federal fiscal policy actions are coming.”

“Without adequate fiscal support before too long, I am concerned that recessionary dynamics will gain more traction and lead to a slower trajectory back to maximum employment.”