By Suzanne Cosgrove
CHICAGO (MaceNews) – Chicago Federal Reserve President Charles Evans told reporters Tuesday that he “wouldn’t mind” another 25 basis point interest rate cut at the next FOMC meeting, depending on what the data suggests ahead of the meeting.
Speaking to reporters following a luncheon address to the Rotary Club at the Union League Club, Evans said Fed policy is currently “reasonably well positioned,” but an additional rate cut “would help us get to our inflation objective,” which he reiterated is 2 percent.
The standard playbook is that there is more capacity to adjust policy on the rate side, Evans said. We’re seeing growth, “but less momentum than expected.”
Asked what U.S. economic data would be particularly noteworthy, Evans stressed the Fed looks at everything, adding that he is “feeling pretty CHICAGO (MaceNews) – Chicago Federal Reserve President Charles Evans told reporters Tuesday that he “wouldn’t mind” another 25 basis point interest rate cut at the next FOMC meeting, depending on what the data suggests ahead of the meeting.
Speaking to reporters following a luncheon address to the Rotary Club good about the current state of the economy,” especially still-strong consumer growth and a “good” September U.S. employment report.
But Evans added that he would be mindful of upcoming manufacturing data after weakness in the September Manufacturing Purchasing Managers’ Index reported last week.
“Manufacturing has taken a step down,” he said.
Also in the backdrop is weaker foreign growth and the Brexit deadline at the end of the month, he said.
Asked at the luncheon about the upcoming trade talks with China, he said a breakthrough would be “quite a relief,” as some businesses put investments on hold while evaluating possible tariff implications.