Fed's Evans: Stimulus Plan Boosted Economic Growth
Chicago Federal Reserve Bank President Charles Evans on Friday said he is worried that high energy prices are feeding through to core inflation, but added that resource slack from the slow economy could help mute price pressures over time.
Speaking to reporters after a speech in Bloomington, Illinois, Evans continued to hammer the theme of inflation risks paired with the potential for sluggish growth over the next few quarters.
Some consumer spending was brought forward into the second quarter by the federal tax stimulus package, helping growth exceed worst-case forecasts, Evans said.
In general, the rate of growth is likely to recover only slowly from the current slowdown, he said.