Evans on CNBC
- Trade uncertainty seems to be weighing on business investment
- He's comfortable with policy now but worried about inflation levels below 2%
- I'd be more aggressive in defending 2% inflation target
- Consumer and labour markets remain strong
- Can look through price increases from tariffs
- Policymakers should be overshooting 2% target to be symmetric
- Inflation pressures seem not strong or absent
- Would take it into account if the economy softens but that hasn't been seen
- If there is more softening, policymakers need to ask if they are getting in the way of the economy
- Markets are seeing something that I have not yet seen in the national data
- We have to pay attention to data and market signals
- Economy still solid but uncertainty higher
He's not as dovish as the bond market would like, especially for a guy who is more of a dove. The comments about overshooting are moving in that direction but he doesn't sound close to calling for a cut.
Quotable: Markets "seem to be seeing something that we're not seeing as quickly .. We need to pay attention to that."
... a trade war maybe?
Powell speaks at 1355 GMT today.
