Evans Unswayed By CPI Miss

• Seemingly minimal impact from today's CPI miss for Evan's, having previously on Aug 2 seen 3.25-3.5% for year-end as "hopeful" and 3.75-4% by 2Q23 as "sufficiently high.

*EVANS SEES FED FUNDS RATE RANGE AT 3.25%-3.5% BY YEAR-END - bbg

*EVANS SEES FED FUNDS RATE RANGE AT 3.75%-4% BY END-2023 - bbg

• Recall that whilst a ’23 voter, he retires in early 2023 with his 65th birthday on Jan 15.
• Whilst there admittedly hasn't been much time for Evans to assess today's CPI, comments have frequently pivoted back towards labour market tightness.
• Other comments see a Waller-esque soft landing with vacancies being trimmed without material rise in u/e rate: “Quite possible that we’ll be able to tighten mon pol enough so it’ll put pressure on the economy so that inflation will be more manageable, it will come back down to 2% inflation objective and unemployment will almost surely go up but only towards a more sustainable which nationally is probably closer to 4.25%. Tend to be agnostic about that, it could be lower. [...] Vacancies are just part of this and that adjustment process can likely be very different to anything else we’ve experienced, with people wiping away vacancies… it could work out ok.”