by Howard Schneider
Aug 10 (Reuters) – Current rise in inflation must not push the US Federal Reserve (Fed) to tighten monetary policy prematurely as several months of additional labor market data are needed before making any changes Chicago Federal Reserve Chairman said on Tuesday.
Speaking in a virtual meeting with reporters, Charles Evans noted “headway” towards when it will be appropriate for the central bank to reduce its monthly asset purchases and possibly raise interest rates. interest.
The threshold for tapering is likely to be reached “later this year”, given the strong outlook for job growth, he said.
But, unlike some of his peers in favor of an imminent easing of the Fed’s support measures, Charles Evans remains one of the most convinced that the current rise in prices is a transitory phenomenon and that the central bank must be aggressive to lead. achieve its goal of full employment.
Chicago Federal Reserve Chairman says he wants to wait for “a few” more monthly jobs reports before determining whether enough progress has been made to start scaling back measures to support the US economy in the face of the health crisis. .
(Reportage by Howard Schneider; French version by Jean Terzian)
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