• Thursday, February 27, 2020 - 11:30

    --Chicago President's Speech Gives No Outlook on Rates, Coronavirus

    (MNI) - Chicago Fed President Charles Evans said Thursday the U.S. should commit to keeping inflation above target for periods of time following weakness and embrace extraordinary tools like asset purchases and forward guidance.

    Those moves would help in an era where inflation persistently lags the Fed's goal, Evans said in the text of a presentation he's giving Thursday in Mexico City. The risk of entrenched weak inflation is heightened by interest rates being much closer to zero, a situation unlikely to change anytime soon, he said.

    "Countering the ELB (effective lower bound) inflation bias may require more periods of above-target inflation than experienced in the past.