Fed's Evans: Expects good momentum for the US economy well into 2022

Chicago Fed President Charles Evans said on Thursday that he expects good momentum for the US economy to continue well into 2022, according to Reuters. Moreover, the labour will continue to improve next year as people come back to into the labour force, he said, adding that he expected the unemployment rate to drop below 4.0% and maybe even go as low as 3.5%. Evans conceded that the US economy is currently looking at some pretty substantial increases in labour costs, and that supply chain issues will last longer into 2022 than he would like. Nonetheless, Evans said he remained optimistic for 2022.

Market Reaction

The dollar has not seen any reaction to these remarks from Fed's Evans, which don't add anything new to the Fed policy debate/outlook.