Chicago Federal Reserve President Charles Evans appeared to share his views on the direction of monetary policy.
Following a disappointing employment report on Friday, Evans opined that the employment sector is still strong despite many weaknesses. Evans continued, many sectors are experiencing growth. Hence he thinks and hopes the employment data will increase in May.
Non -agricultural wages rose just 266,000 in April, well below the 1 million estimate. That brings the total number of jobs to more than 7.5 million under February 2020, a month before the declaration of the Covid-19 pandemic.
Evans noted that the job market continues to gain strong policy support through stimulus packages worth trillions of dollars spent on Congressional and the Fed’s own policies.
But what remains is a question of when the Fed will withdraw the measures implemented at this time. For Evans, this takes some time to evaluate and look at the data first.
In addition to weak employment volumes, inflation remained below the Fed’s average target of 2%. Evans said it will probably take months to reach that target.
For example, at this point the data will determine it. Care must be taken if employment and inflation data meet the target.
