Fed's Evans: Supports two or three hikes in 2017

Author: Adam Button | Category: Central Banks

Fed's Evans in New York

  • Supports two or three hikes in 2017
  • Expects Fed rate hike path to unfold along median path
  • Business investment is somewhat disappointing
  • Foreign growth prospects look better than they have in awhile
  • Details on US fiscal trajectory still somewhat unclear
  • US labor markets have been very strong, there's room for wages to improve even more
  • Downside risks seem less intense now
  • Strong dollar has helped keep inflation down
  • Sees more upside in the uncertainty facing the Fed
  • US is pretty close to full employment
  • Want to get balance sheet to long-term sustainable place

Evans is important this year because he's a voter. If he shifts towards Kashkari's thinking, that would be two dissents on the dovish side. But for now, he's not in that mindset.