Evans hinted in favor of further interest rate cuts

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      "You may think like me that inflation alone requires us to adopt a more relaxed policy than we did at the last meeting," Evans told reporters in an annual interview in Chicago.
"You may think that the development of the situation may have brought greater resistance to the economy, and it is reasonable to take more action... I don't know, "he said, adding that data and corporate reviews will be observed to assess whether further policy easing is warranted.
Risk management concerns, he said, are that the Fed needs to use more policy tools ahead of time to prevent a possible economic downturn and possibly to justify more easing by the Fed when interest rates are close to zero.
At last week's policy meeting, Evans voted with most members to reduce the target range of the benchmark interest rate to 2.00% - 2.25%. Before the meeting, he said that another 25-basis-point cut should be made before the end of the year to help boost the annual inflation rate and bring it back to the 2% target set by the Federal Reserve.
On Wednesday, he reiterated this view, noting that GDP is expected to grow by about 2.25% this year and that the labor market is still doing well, adding, "If the labor market starts to slow down or something else happens, it will be a risk because consumers are a key driver of economic growth. "
He was particularly concerned about whether firms that had already cut investments because of trade uncertainty would lay off workers.


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