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Sept. 23, 2020, 11:50 a.m. EDT

Fed's Evans: My comment that got markets' attention was really just a reading of already released Sept. statement

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By Greg Robb

Chicago Fed President Charles Evans said Wednesday that his comment that moved financial markets earlier in the week was just a simple reading of the central bank's already-released September policy statement. "I really thought that I was pretty much reading out what our September policy statement was saying," Evans said, during a conversation sponsored by MNI. Evans said that the Fed statement says the Fed expects to hold its policy rate close to zero until inflation gets to 2%. After that, the Fed can begin to raise rates but policy will still be accommodative as the Fed seeks to get inflation to average 2% over some time. The dollar rose as traders interpreted his comment as a signal of an earlier lift-off of zero than anticipated. Evans said he thinks markets should understand that a 2.5% inflation rate for some period of time "is likely in the cards" if the central bank is doing its job right.

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