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.
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