Fed dove Evans said policy should remain on hold until midyear
Fed dove Evans said policy should remain on hold until midyear in order to better assess incoming inflation data, according to his text. Remember Evans, a long-time dove, was one of two dissenters at the December FOMC (he is not a voter this year). While he remains relatively upbeat on growth, "the economy is firing on all cylinders and has plenty of momentum," his concerns over low inflation persist and is the main rationale for his outlook. He forecasts growth of about 2.5% to 2.75% this year, with about 0.4% to 0.8% of that coming from tax reform, with growth slowing in subsequent years. As far as inflation goes, core prices are running around 1.5% and continue to undershoot the FOMC's 2% objective. He expects a gradual rise in prices over time, getting to the target by late 2019. And there may be some hint of rising prices occurring now. Were inflation to accelerate he would support further tightening. This is a consistent position from Evans.