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Fed's Evans says he expects 2% inflation by 2023, but no rate hikes

FILE PHOTO: Chicago Federal Reserve Bank President Charles Evans looks on 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 said Wednesday he does not expect the U.S. central bank to increase interest rates through at least 2023, though he does expect inflation to reach the Fed’s 2% goal by then.

For inflation, he told reporters on a video call, “it’s just a slow slog beyond that - I’ve got an overshoot in the out years, but that’s premised on continued accommodation and better fiscal policy as well.” The most important factors for the recovery over the next six to 18 months, he said, are greater fiscal support and better control over the COVID-19 pandemic

Reporting by Ann Saphir; Editing by Andrea Ricci

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