MNI BRIEF: Fed's Evans May Reconsider Adjusting QE in Spring

Chicago Federal Reserve President Charles Evans said Monday he's comfortable with the current QE program and it will be until around spring before there's enough evidence of the economy's progress to see if it needs to be adjusted.

The Fed could adjust the pace or duration of assets being targeted, Evans told reporters after a speech. The economy could grow 4% this year and unemployment decline to around 5%, depending on how the pandemic progresses, said Evans, who joined the FOMC voting group this year.

Consumer spending over the holidays is more difficult than usual to analyze given the shift in how people could shop, while the federal relief package will be a boost to incomes this year, he said. Any short term burst of inflation likely won't be sustained given the pressure the economy remains under, he said.