Oct 5 (Reuters)Chicago Federal Reserve Bank President Charles Evans on Monday said he expects U.S. inflation to reach 2% by 2023 and signaled his support for allowing it to rise to 2.5%, a level seen by others at the Fed as excessive.

“The Fed “needs to have an ‘in it to win it’ attitude toward our inflation objective,” Evans said in remarks prepared for delivery to the National Association for Business Economics. “This will require actual overshooting, and we can’t be timid about doing so.”

In August the Fed adopted a new framework to counter long-running structural forces pulling down on inflation, officially aiming for 2% inflation on average.

Last month it put that framework into practice with a promise to keep rates at their current near-zero level until inflation reaches 2% and is on track to overshoot that level for some time. Most U.S. central bankers, including Evans, believe that won’t be until after 2023.

Important questions remain, including whether the Fed will increase asset purchases at some point to speed inflation’s return to 2%. Also unclear is whether or how long beyond 2023 the Fed will keep rates at zero, and how high above 2% will it allow inflation to go.

Evans for his part was clear: though the Fed may start raising rates before inflation reaches the 2% average inflation goal, it ought to keep policy loose enough to allow a strong overshoot.

Letting inflation rise only to 2.25%, as for instance Dallas Fed President Robert Kaplan suggested last week, would keep the Fed from reaching its average inflation goal until 2026, Evans said.

Allow inflation to reach 2.5%, he said, and the Fed could reach the 2% average goal a year earlier.

Had the Fed’s new framework been in place after the last crisis,

ICYMI: Rhode Island was up to 25,076 confirmed coronavirus cases on Friday, after adding 133 new cases. The test-positive rate was 1.4 percent. The state announced one new death, bringing the total to 1,118. There were 96 people in the hospital, seven in intensive care, and seven were on ventilators.

* * *

Will President Trump win Johnston? Can Barbara Ann Fenton-Fung unseat House Speaker Nicholas Mattiello? Who’s going to be the next mayor of Cranston?

With the general election just four weeks away, we’re giving you the chance to pick the winners of 61 races and one statewide ballot question, including the race for president, every mayoral matchup, and all of the contested seats in the General Assembly.

You can fill out an entry by clicking here.

We ended up with nearly 800 submissions for the primary contest, so our goal is top 1,000 entries this time around. The top 10 finishers will get a Rhode Map tote bag, and to up the ante a little bit, first place gets a $100 gift card to Frog & Toad, second place gets a $50 gift card, and third place gets a $25 gift card.

Feel free to vote early and often. And make sure you encourage your friends to fill out the form as well.


⚓ Speaker Mattiello isn’t the one on trial this week, but Ed Fitzpatrick writes that his political future might be at stake depending on how political operative Jeff Britt’s case shakes out.

Amanda Milkovits reports that a new study shows health care costs increase up to 20-fold in the first six months after a gunshot injury versus the six months before.

⚓ This week’s Ocean State Innovators Q&A is with Rebecca L. Twitchell, president and

By Friday, they were quickly shifting gears on the basis that Trump’s positive result would deal a blow to his campaign and lessen the overall chances of a contested election outcome.

“Trump contracting the coronavirus will elevate institutional money’s preparation for a Democratic White House and all the tax, trade and budget implications that go along with it,” James McDonald, CEO of Los Angeles-based fund manager Hercules Investments wrote in a note.

“We expect institutional investors to start de-risking portfolios and increasing hedges in preparation for market volatility.”

Oil prices dropped on the news and stocks saw an initial selloff in a volatile morning trading session. L8N2GT1IW

Major banks have been running simulations to ensure they can cope with a spike in market, liquidity and credit risks in case of a contested election or even a constitutional crisis.

One senior capital markets banker said on Friday that their institution was still stress testing for all scenarios, but that it had tilted the focus of the simulations more towards a clear Biden victory and what that would entail in terms of volatility and hedging strategies.

“This increases Biden’s chances and reduces the chance of lawsuits and recriminations,” said another banker.

The bankers declined to be identified because the internal plans are private.

Biden, who tested negative for COVID-19 on Friday, has a nine-point lead over Trump following their combative first debate on Tuesday, according to a Reuters/Ipsos poll published Thursday.

The White House said on Friday that the president was displaying mild symptoms and was self-isolating with first lady Melania Trump who also tested positive. His campaign said it was rescheduling or postponing several planned events. It was unclear if the next television election debate scheduled on Oct. 15 would still go ahead.

One of the bankers added that Trump’s

The Massachusetts Gaming Commission on Wednesday voted to renew the license of the Plainridge Park Casino, the Plainville slots parlor, which five years ago was the first property to open under the state’s expanded gambling law.

The unanimous decision extends Planridge’s license by five years and marks the first time that the commission has had to reauthorize a casino. The two larger casinos in the state, Encore Boston Harbor in Everett and MGM Springfield, opened later.

But Plainridge, which is also home to a harness racing track and a simulcast venue, will be moving forward without a key leader. The casino’s owner, Penn National Gaming, announced on Wednesday that Lance George, who has been general manager of the property since before it opened, is leaving.

George will take over one of Penn’s larger properties, the Argosy Casino Hotel and Spa near Kansas City, Mo. North Grounsell, who is an assistant general manager at one of the company’s Colorado properties, will take the lead role at Plainridge in coming months, pending regulatory approvals.

In a statement, Jay Snowden, chief executive of Penn National Gaming, expressed appreciation for the commission’s decision, which was expected.

“The Commission has set high standards for the integrity of gaming and racing in Massachusetts, and we pledge to continue to uphold these principles over the next five years and beyond,” Snowden said.

Plainridge said it had 413 employees at the end of June, though many were on furlough amid a shutdown brought about by the COVID-19 pandemic. More recently, Penn said it had cut ties with some of the workers who remained on furlough after the casino was allowed to reopen at reduced capacity.

The relicensing decision followed a lengthy process including community meetings, a public hearing, and extensive discussion over several commission meetings.

“On behalf of

(Adds strategist quotes and details throughout; updates prices)

* Canadian dollar advances 0.5% against greenback

* Canadian GDP increases 3% in July

* Loonie declines 2.1% in September

* Canadian government bond yields rise across steeper curve

By Fergal Smith

TORONTO, Sept 30 (Reuters) – The Canadian dollar
strengthened to a one-week high against the greenback on
Wednesday as hopes of additional U.S. stimulus rose and data
showed the domestic economy extending its recovery, with the
loonie clawing back some of this month’s decline.

The loonie was trading 0.5% higher at 1.3323 to the
greenback, or 75.06 U.S. cents. The currency touched its
strongest intraday level since last Wednesday at 1.3301.

Still, the loonie posted a monthly decline for the first
time since March as rising Canadian coronavirus cases weighed on
investor sentiment. It ended September 2.1% lower.

The big driver for investors was news “that there’s some
progress on the U.S. stimulus bill,” said Amo Sahota, director
at Klarity FX in San Francisco. “Any motion in that direction is
lifting market sentiment up, and that’s beneficial for the

Canada sends about 75% of its exports to the United States,
including oil. U.S. crude futures settled 2.4% higher at
$40.22 a barrel, while shares on Wall Street rose.

U.S. House of Representatives Speaker Nancy Pelosi and U.S.
Treasury Secretary Steven Mnuchin expressed hope for a
breakthrough in partisan stimulus negotiations in Congress.

The Canadian economy expanded by 3% in July from June as
businesses across the country continued to reopen from
coronavirus-related shutdowns, with growth expected to grow at a
pace of 1% in August.

Canada’s economy could suffer a smaller hit from a second
wave of the coronavirus pandemic than earlier this year, as
provinces strive to avoid broad-based lockdowns and take
targeted measures to deal with outbreaks,