Fed to set monetary policy on actual economic outcomes, Evans says

FILE PHOTO: Chicago Federal Reserve Bank President Charles Evans speaks during the Global Interdependence Center Members Delegation Event in Mexico City, Mexico, February 27, 2020. REUTERS/Edgard Garrido

(Reuters) - Chicago Federal Reserve President Charles Evans on Wednesday said the central bank will set its monetary policy on economic outcomes and will not reduce monetary policy accommodation until it sees actual improvements.

“We’re looking for actual improvement in the economy and inflation to get back up to our dual mandate objectives of maximum inclusive employment and 2% inflation on average,” Evans said at an event hosted by the Japan America Society of Chicago.

He forecast in the speech that the U.S. economy will grow 6.5% this year, unemployment will fall to 4.5% this year and below 4% next year, and for inflation to rise temporarily before falling back.

Reporting by Ann Saphir