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Evans Says Fed Plan Allows Hike Before Inflation Averages 2%

  • Fed still needs to discuss details on inflation averaging
  • FOMC may raise rates and still have accommodative policy
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The U.S. central bank’s new guidance on interest rates doesn’t preclude tightening before inflation averages 2% for some period of time, Chicago Fed President Charles Evans said.

“We’ve sort of said we’re looking to get inflation up to 2%, and then after that, we could be raising rates and still have an accommodative setting of monetary policy,” Evans said Tuesday while answering questions during a virtual event hosted by the Official Monetary and Financial Institutions Forum.