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Fed's Evans says labor constraints may doom bid to boost economy

Charles Evans, president of the U.S. Federal Reserve Bank of Chicago.
Daniel Acker | Bloomberg | Getty Images
Charles Evans, president of the U.S. Federal Reserve Bank of Chicago.

Aggressive fiscal and other policies could push U.S. economic growth to 4 percent in the short run, but would raise inflation risks unless coupled with strategies to boost productivity or expand the labor market, Chicago Federal Reserve President Charles Evans said on Thursday.

Evans did not mention the proposals of President-elect Donald Trump specifically, but said U.S. growth will remain stunted unless the labor force or productivity grow unexpectedly.

"The U.S. economy could experience a burst of 4 percent growth for a year," Evans said while speaking on a panel in Naples, Florida. But "it is not possible to just birth a large cohort of 25-year-olds."