By Suzanne Cosgrove
Lake Forest, Illinois (MaceNews) – Chicago Federal Reserve President Charles Evans said Wednesday the Fed was “well-positioned from a risk-management standpoint,” following the September quarter-point interest rate cuts.
However, Evans said he would continue to evaluate incoming data through the end of the year, and is open-minded to its discussion. He cited potential risks coming from trade uncertainty and a slowing of European growth. “Most of the rest of the U.S. economy is doing well,” he told reporters after a speech to a Chicago-area group.
Earlier, Evans told a Lake Forest, Illinois, gathering of Rotary Club Foundation members that sustainable growth would most likely be around 1 3/4 percent this year. Asked about slippage into an inverted U.S. yield curve, he said it could be a signal that markets perceived risks that were different than the economic indicators suggested.
Evans also said he is continuing to monitor the inflation rate, which has been below target, and reiterated the Fed “hangs our credibility” on a 2 percent rate.
“It’s perhaps the case that because of market complexities, we might need larger balance sheets and have ad hoc repos,“ Evans said