Fed’s Evans Welcomes 3% Inflation Rate

President of the Federal Reserve Bank of Chicago, Charles Evans, on Wednesday expressed a positive sentiment towards a stronger economic growth in 2021.

“I am optimistic that the economy is poised for strong growth later this year.”

Evans said the U.S. Federal Reserve must witness sustainable progress in achieving its goals for the economy before it starts to curb its monetary easing policies.

“We are going to have to go months and months into the higher inflation experience before I’m going to even have an opinion on whether or not this is sustainable or not, and that’s going to be uncomfortable.”

“We really have to be patient and be willing to be bolder than most conservative central bankers would choose to be if we are going to actually get inflation expectations to move up in a sustainable fashion.”

Evans believes the rise in Treasury bond yields is “a sign that the economy is doing better,” noting that he would welcome inflation in the 2.5%-3% range.

“Some even higher rates of inflation are needed to get inflation to average 2% and to solidify inflation expectations about that number.”

“I see the need for continued accommodative monetary policy to reach our goals.”