Fed Evans Finds Wait and See by Central Bank Appropiate

The U.S. economy’s fundamentals are solid and growth this year should pick up to around 2.5 percent, but the Federal Reserve’s current ‘wait and see’ approach to monetary policy is appropriate, a Fed policymaker said on Monday.

Charles Evans, president of the Chicago Fed, told a conference in London that business investment and inflation remain lower than he would like.

The most recent indications from Fed officials point to two more interest rate hikes this year. Financial markets, however, are barely pricing in one more, and that is not expected until December, after the U.S. presidential election.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza