MNI BRIEF: Fed's Evans Comfortable With Current QE Stance

Chicago Federal Reserve President Charles Evans said Friday that while stronger QE may be needed if inflation continues to lag, he's comfortable with the current level and it will likely be into the spring until the economy's trajectory is clear enough for a reassessment.

"I'm not opposed to more accommodation, I'm just not sure exactly what the right timing is," Evans told reporters. "I am comfortable with our current setting for asset purchases," and it will take a few months "until we get more clarity on what the economic situation is going to be."

Inflation expectations are likely the most important consideration in determining changes to asset purchases, Evans said, adding that given the Fed's struggles meeting its inflation target, policymakers may want to consider another major boost to the balance sheet at some point.

He also reiterated that it may be 2023 or 2024 before any increases in the official policy rate, currently near zero, given weak inflation pressure.