Fed's Charles Evans will go into December meeting with open mind

Image
Reuters LONDON
Last Updated : Nov 15 2017 | 4:48 PM IST

By Marc Jones and Helen Reid

LONDON (Reuters) - Federal Reserve policymaker Charles Evans said he will go with an open mind into next month's policy meeting, at which the U.S. central bank is expected to raise interest rates for a third time this year.

Speaking to reporters on Wednesday, Evans, who heads the Federal Reserve Bank of Chicago, said the pick-up in global growth was making life easier for central bankers but that the number of vacant positions on the Fed's board was "very challenging".

"You go into December and you all have a discussion and you make a decision," Evans said on next month's meeting.

"I have argued that I think we still have a ways to go with respect to inflation. I am optimistic that the state of the economy is strong and that's going to help move inflation in the right direction but I think we will continue to need accommodative policy."

But the improving economic backdrop was helpful, he said: "From the U.S. perspective I find it extremely supportive that the global economy has improved and that makes all of our jobs easier."

Evans said earlier said in a speech that he was worried about a drop in U.S. inflation expectations, and called for the central bank to respond by flagging the likelihood of higher inflation ahead.

In Frankfurt on Tuesday he also became the second Fed policymaker in recent days to call for a broader approach to rate-setting.

Noting the challenges facing the Fed due to the vacant or soon-to-be vacant policymakers' seats, Evans added: "It's very useful to have a full complement of governors and I look forward to the President appointing continued very good Governors -- all seven of them."

On how long it might take to appoint the full board, Evans said: "I can't guess, I have no idea. That's a political question."

He said he expected Jerome Powell's experience on the current Fed board to set him up well when he takes over from Janet Yellen as chair of the central bank in February.

(Reporting by Marc Jones and Helen Reid; Editing by Catherine Evans)

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Nov 15 2017 | 4:33 PM IST

Next Story