Fed's Evans said more monetary support will probably be required
Fed's Evans said more monetary support will probably be required to achieve the 2% inflation objective, in his comments on trade and the economy. And he suggested that with a couple of rate cuts, PCE could be at 2.2% in 2021. Fundamentals are good currently, he said, and believes the setting for rate policy is about neutral. Labor market growth is good, while consumer spending has been very strong. But business fixed investment is weaker than expected. He expects growth of about 2%, close to what he sees as a sustainable trend. He is nervous about under-running the inflation objective. Evans is a dovish voter, and his comments fit with Powell's testimony, though go a bit beyond in terms of the policy path.