Fed's Evans: Recalibrating the stance of policy is essential but I'm still in the data monitoring phase

While speaking at a conference in Stockholm, Chicago Fed President Charles Evans argued that some temporary factors were behind the recent slowdown in inflation and added that long-term interest rates were not indicating inflationary pressures, as reported by Reuters.

"We might need to aim at above 2% inflation to get back to 2%, we want to ratify the idea that we are symetric about inflation," Evans noted. "Ff necessary, recalibrating the stance of policy is essential but I'm still in the data monitoring phase."

"If there was an assessment that underlying inflation, inflation expectations were lower and inconsistent with 2%, the Committee would be well served by having a discussion about recalibrating. If inflation data came in weaker and employment doesn't start moving the dials, then perhaps we might have to do something," Evans concluded.