Economics
Evans Says Fed May Have to Ease If Downside Risks Take Hold
- Growth may dip below 2 percent in 2019, Chicago Fed chief says
- Evans says further tightening may be needed if inflation rises
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The Federal Reserve may have to put interest-rate increases on hold or even ease monetary policy if economic forecasts for 2019 disappoint, Chicago Fed President Charles Evans said.
“At the moment, the risks from the downside scenarios loom larger than those from the upside ones,” Evans said in remarks prepared for a speech Monday in Hong Kong. “If activity softens more than expected or if inflation and inflation expectations run too low, then policy may have to be left on hold -- or perhaps even loosened -- to provide the appropriate accommodation to obtain our objectives.”