Fed’s Evans Expects US Economic Momentum Into 2022

Despite all the challenges ahead, Fed’s Evans said he remained optimistic for 2022. Chicago Fed President Charles Evans said on Thursday that he expects good momentum for the US economy to continue well into 2022.

Evans expects the labour sector to continue to improve next year as more and more people come back and add to the existing labour force as well.

He expects the unemployment rate to drop below 4.0% and maybe even go as low as 3.5%. Evans conceded that the US economy is currently looking at some pretty substantial increases in labour costs, and that supply chain issues will last longer into 2022 than he would like.

The dollar has not seen any reaction to these comments by Fed’s Evans, which don’t add anything new to the Fed policy debate.