:》Chicago Fed chief says rates may be ‘pretty close to neutral’
》Inflation outlook depends on how long tech impact lasts: Evans
Fed's Evans Sees September Balance Sheet Move
By Matthew Boesler
9 August 2017, 20:00 GMT+3
Chicago Fed chief says rates may be ‘pretty close to neutral’
Inflation outlook depends on how long tech impact lasts: Evans
Charles Evans, president of the U.S. Federal Reserve Bank of Chicago.
Chicago Fed President Charles Evans said it would be “reasonable” to announce the roll-off of the central bank’s balance sheet next month, while cautioning that disappointing inflation data may delay interest-rate increases as technological disruption dampens price pressures.
“The table is set for the recent unusual downward movements in inflation -- due to cell phone data services prices and other factors -- receding, and we’ll just have to see how that goes," Evans told reporters at a media briefing in Chicago on Wednesday.
On the other hand, “people are utilizing newer technologies, competition is emerging from unexpected places -- not necessarily your nearest competitor but somebody else -- and that could lead to reduced margins and downward price pressure for some period of time,” he said.