According to Odaily, Charles L. Evans, the Chairman of the Federal Reserve Bank of Chicago, has suggested that policymakers should consider cutting interest rates if the US inflation rate continues to fall towards the 2% target. In an interview, Evans stated that the US is on the path to 2% inflation, and maintaining the same interest rates during a period of falling inflation is equivalent to tightening. Therefore, a decision should be made instead of remaining passive.
Prior to Evans' comments, data released last week showed that the Federal Reserve's most favored inflation indicator, the May PCE data, had only increased by 0.1% month-on-month, marking the lowest level in six months.