Economist's Insights

Evans Disagreed with December Hike, Wanted to Wait until Mid-2018

Jan 10, 2018

In his remarks on Wednesday, Chicago Fed President Evans explained why he dissented to the December rate hike. Evans said, “I don’t see any evidence of inflation moving up really fast, or even moving up enough,” and therefore he felt “it would be good to sort of put off the increases until about the middle of this year just to make sure the inflationary concerns resolve themselves.” He projects core PCE inflation will end 2018 at 1.7% and doesn’t expect to achieve target-rate price gains until the end of 2019. On the economy, he said he expects the U.S. economy to grow 2.5% in 2018 and noted the global economy is doing extremely well.