Fed's Evans: concerned about drop in inflation expectations
During a scheduled speech at the UBS European Conference, in London, Chicago Fed President Charles Evans expressed concerned over persistently weak inflationary pressure in the US.
• Concerned about drop in US inflation expectations
• To boost expectations, Fed should acknowledge a much greater chance of 2.5% inflation
• Sees solid US economic growth in 2018
• Harder & harder to feel comfortable that drop in US inflation is transitory
• Sees big risk in not getting inflation to 2% before next recession hits