Fed’s Evans: Sees jobless rate falling to 6.5% in2015; hard pressed to see inflation outlook much above 2.3%

More comments at earlier post here: Fed Evans speaking to reporters in Toronto now

Still very dovish

  • Fed can do more
  • Low rates until jobless rates hits 6.5% as long as infl below 2.5%
  • 2.5% inflation safeguard more appropriate, the 3% safeguard made people anxious
  • Needs to see monthly gains of at least 200,000 for 6 mths & above potential GDP growth before Fed could end QE3
  • Keeping int rates low even after recovery strengthens does not necessarily mean higher inflation