Federal Reserve's Harker: More Evidence Still Needed to Confirm Inflation Slowdown

BlockBeats News, August 15th, Chicago Fed President Evans stated that the recent CPI data is encouraging, but inflation was still elevated in May and June. He emphasized that if the June momentum continues over the next three to four months, then we can be confident that prices are gradually returning to the 2% target. He supported keeping the interest rate unchanged in July, stating that inflation remains the biggest concern, while the economy and employment are "broadly stable." He warned that a continued decline in retail sales would raise concerns as consumer spending is a key pillar of the U.S. economy.

Furthermore, he expressed concern about the recent slowdown in productivity growth, stating that if AI-driven growth is not sustainable, the narrative around AI and monetary policy will need to be reevaluated. As for whether to reduce the frequency of policy meetings, Evans said he has no strong opinion and is willing to wait for the working group's recommendation. (FXStreet)