Fed's Evans: Optimistic on economic outlook, but inflation is 'far too low'

"Inflation will not be back to goal until mid-2020s,"  Chicago Federal Reserve Bank President Charles Evans said on Thursday, as reported by Reuters. The Fed policymaker also conveyed that he's optimistic on economic outlook, but inflation is 'far too low'.

Additional comments...

• Optimistic on economic outlook, but inflation is 'far too low'.
• US GDP growing 5% to 6% this year; 2% to 3% in 2022, 2023.
• US unemployment close to 3.5% by end of 2023.
• Inflation will not be back to goal until mid-2020s.
• Forecast assumes additional fiscal package of half Biden's proposed $1.9 trillion.
• Fed is committed to using all available tools.
• he expects inflation to rise temporarily this spring, but to end year around 1.5% to 1.75%
•  'Reasonably confident' of meeting max employment goal over next three years; more worried on inflation goal.
• Critical to 'look through' temporary price increases, not even think about adjusting policy.
• I see US staying the course for a while.

FX implications

While offering additional push for US President Joe Biden's $1.9 trillion stimulus, the news joins the league of positive catalysts. Though generally quiet markets around this time of the day offer less reaction to the news. That said, Wall Street closed mixed buth the US 10-year Treasury yeilds stayed strong by the end of Wednesday's North American session.

Read: Wall Street Close: S&P 500 grinds higher amid more mixed market conditions