Evans in Frankfurt

  • Good progress toward Fed goals explains his support for hikes
  • Sees notable upside risks to growth
  • Sees inflation reaching 2% by 2019
  • Fiscal policies uncertainty but general thinking is that the government will boost growth
  • Tax reform not likely to sustainably boost low productivity growth
  • Odds of achieving 3-4% sustainable growth are low
  • Says would be nice if labor participation was much stronger

Evans has been doing the rounds this week so we've heard most of this before. The nod towards upside risks is something new and it's a bit hawkish and USD-positive but he will wit and see how the data unfolds.