0918 ET - Chair Jerome Powell and several of his colleagues on the Fed's policy committee have said monetary policy is in a good place, implying that the Fed can hold steady until there's more progress on inflation or until a weakening labor market forces action. This reminds BNP Paribas's economics team of the "Evans rule," a post-financial-crisis Fed framework named for former Chicago President Charles Evans in which the Fed committed to holding rates near zero until specific thresholds were reached. "Our read of this language is that the current policy hold is appropriate so long as inflation remains elevated and the unemployment rate remains in its post-pandemic range," BNP writes. "Once one of these thresholds is reached, policy easing can resume." (matt.grossman@wsj.com, @mattgrossman)
(END) Dow Jones Newswires
March 20, 2025 09:18 ET (13:18 GMT)
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