Evans Sticks To Core Fed Views

Chicago Fed President Evans sticks with the central Fed view in a second batch of comments

• Evans suggested that the short-term neutral rate may be higher than that observed over the longer run.
• He flagged his optimism that inflation will be sit at 3% or lower over ’23, while expressing a need to continue tightening if inflation does not react to Fed rate hikes, underlying the expeditious nature of the ongoing tightening cycle.
• When it came to balance sheet matters, Evans noted that “it's time to adjust our balance sheet back to a more normal setting.” He “wouldn't say that involves a full round trip in its size.”