The Fed: Fed’s Evans sees ‘hint’ of building inflation pressures in latest data

Chicago Fed President Charles Evans

There is “a hint” in recent economic reports that inflationary pressures are building, but so far not many actual increases in consumer prices, Chicago Fed President Charles Evans said Wednesday. As a result, the central bank can hold off raising rates until “mid-year or so” in order to assess the incoming inflation data, he said.

The whiff of higher inflation has come in the form of some “positive” price-level indicators, Evans said in a speech to the Iowa Bankers Association in Des Moines. In addition, manufacturers are talking about higher commodity prices, and the most recent wage data exhibit a “firming trend,” he said.

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