The Federal Reserve has set monetary policy to where it can deliver on its 2 percent inflation goal and there is scope to raise rates slightly over the next few years if the economy continues to grow, Chicago Fed President Charles Evans said on Tuesday.
The Fed has cut rates twice this year as US businesses were hit by rising trade tensions with China, political risk including Britain’s chaotic divorce from the European Union, and weakening economic growth in Germany and elsewhere.
Evans said this was setting inflation on course to accelerate to 2.2 percent by 2021 while the US economy would continue to grow according to its long-term trend, creating leeway to raise the Fed’s key interest rate over the next few years.
News source : The daily star
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