Evans gets tagged in by Constancio

  • Sees US growth of 2.5% for rest of year though notes the weak Q1
  • Corporate spending is weak spot in US economy
  • Would like to have more confidence in the outlook for inflation
  • Fed's wait and see stance is appropriate
  • Inflation expectations have fallen in the longer horizons
  • Fed is disappointed in the low levels of business investment

We're hardly in an environment were companies want to go out on a limb with spending.