Chicago Fed's Evans continues to reinforce......>

FED: Chicago Fed's Evans continues to reinforce that he's not gunning for a

third rate cut, telling reporters after a Frankfurt speech that the Fed funds

rate is currently at an "appropriate" level.

- In speech earlier, noted that "within six months, I went from thinking it

appropriate to eventually take policy rates 50 basis points above neutral to one

where 50 basis points below neutral was in order." Later he noted that the FOMC

median estimate of neutral was 2.5%, implying that rates now at 1.75-2.00% are

at/below neutral.

- Indeed, said describing "my mid-cycle adjustment", "the situation ["as we went

through 2019"] called for us to cut policy rates 50 to 75 basis points below the

long-run neutral rate and then leave policy on hold for a time".